Liberty looks to continue steel asset buying spree

UK-based metals producer Liberty House has submitted binding offers for integrated steelmaker ArcelorMittal's Ostrava, Galati, Skopje and Piombino plants, ArcelorMittal said today.

The assets are part of a divestment package agreed with the European Commission to facilitate ArcelorMittal's acquisition of Italian steel producer Ilva. The closing of the Liberty deals is subject to the closing of the Ilva deal, EU approval and consultations with local councils and European Works Councils.

Liberty has been buying steel assets at pace in recent years, at a time when others have been looking to sell assets or consolidate. It owns a hot-rolling mill in Newport, south Wales, as well as a Yorkshire-based speciality steel business previously owned by Tata Steel and Scottish plate mills. And it owns downstream facilities, the old Caparo Merchant Bar business in Scunthorpe, England, and the former Thamesteel assets in Sheerness, Kent.

Liberty tried to acquire Tata Steel's Port Talbot business but lost out to the joint venture with ThyssenKrupp. It recently invested in its Newport hot-rolling line to improve surface quality of the material.

In Australia, Liberty acquired Arrium's steel business, which is now called Liberty Onesteel. The business can produce 2.6mn t/yr, and has electric arc furnace (EAF) and blast furnace capacity. Liberty supports EAF production, in line with its "green steel" philosophy. The Australian facility has shipped at least one slab consignment to Liberty's Newport mill.

The company has also bought the Georgetown wire rod business in the US and is looking to invest in Indian production. Liberty Steel Georgetown has two EAFs, with one operational and capable of producing 500,000 t/yr. The site has rolling capacity of 750,000 t/yr.

ArcelorMittal said talks are continuing over the sale of its Dudelange facilities in Luxembourg and of its Liege finishing lines in Belgium. Germany's Salzgitter bid for the assets, and Swedish steelmaker SSAB was interested, according to market participants, but the company refused to comment.