BY PTI | UPDATED: APR 21, 2017, 07.02 PM
IST
LONDON: UK-based Indian-origin entrepreneur
Sanjeev Gupta's Liberty House Group today announced an in- principal agreement
to acquire ArcelorMittal's Georgetown Steelworks in South Carolina.
The proposed deal between Liberty House and NRI
steel magnate Lakshmi N Mittal's US steelworks includes a 540,000- tonne a year
electric arc furnace and 680,000-tonne a year rod mill.
The agreement is subject to agreement on final
terms between the two parties and completion of due diligence by Liberty
over the coming weeks, a joint statement said.
If completed as planned, the acquisition will
give Liberty House the opportunity to reopen and revitalise business, which was
an important part of the state's industrial infrastructure for 47 years before
its closure in August 2015.
It would also mark the first significant step in
Liberty's plan to make major investments in the US steel industry, the UK-based
company said.
"This is a landmark day for Georgetown and
its residents, particularly families with a previous stake in the steel
industry who will now get a chance to rediscover what was lost.
Our
agreement in principle with Arcelor Mittal opens the door to the eventual
restoration of several hundred jobs, both directly and in the supply chain, and
it gives this region's economy a new industrial focus," Gupta said.
The businessman behind the GreenSteel strategy
of Liberty House has been instrumental in a string of recent acquisitions of
struggling steel units in the UK, including those formerly owned by NRI
industrialist Swraj Paul's Caparo Group and Tata Steel.
He
explained: "This is a key first step for us in the US.
We're keen to apply the same low-carbon
GreenSteel vision here as we are doing in the UK.
Acquiring the plant at Georgetown, with its
ability to recycle scrap steel in an arc furnace, gives us a strong platform
from which to launch our strategy in the US.
Read more at:
http://economictimes.indiatimes.com/articleshow/58300697.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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