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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--U.K.-based Liberty Steel Group has launched a bid to take over Europe's second-largest steelmaker, thyssenkrupp Steel Europe.
Liberty said the non-binding indicative offer (NBIO) is part of a "thyssenkrupp-led process" to sell off its troubled steel division. Liberty Steel, which is part of the GFG Alliance, is a global steel and mining business with annual revenues of about 13 billion euro ($15 billion), employing 30,000 employees in more than 200 locations globally. It said that the possible combination of both companies "would create a strong group well positioned to tackle the challenges faced by the European steel industry and accelerate the transformation to "Green Steel". The deal would effectively propel Liberty Steel from Europe's fourth largest steel company to the region's second-largest steelmaker after ArcelorMittal (NYSE:MT).
The company employs 14,000 people in Europe and produces a wide range of primary and engineered steel products from seven plants located in the Czech Republic, U.K., Romania, Belgium, Luxembourg, Italy and North Macedonia. It has a combined annual rolling capacity of 10 million tonnes per annum. With around 27,000 employees, thyssenkrupp Steel Europe produces about 11 million tonnes of crude steel per year-- making it Germany's largest flat steel manufacturer. The company has also set itself the goal to produce 3 million tonnes of CO2 neutral steel per year from 2030 on and to make its steel production fully climate-neutral from 2050 on. Like many in Europe's steel sector, the company has been hit hard by the COVID-19 pandemic. In April, Industrial Info reported that the company was cutting 3,000 jobs in its steel business as part of a coronavirus "crisis package" and longer-term efforts to improve the performance of the unit. For additional information, see April 6, 2020, article - European Steel Industry Hammered by Coronavirus.
Liberty Steel said that it is convinced that a combination with thyssenkrupp Steel Europe can be the right answer from "an economic, social, and environmental perspective."
It stated: "From an economic perspective, there is potential for a compelling industrial concept given that the businesses are complementary with respect to assets, product lines, customers, and geographic footprint. From a social perspective, Liberty Steel has repeatedly proven to turn around businesses in a way that is loyal to local communities and saves jobs. From an environmental perspective, we are a leader in sustainable industry with a mission to become carbon neutral by 2030. But to transform a whole industry a European approach is required. A joint entity would be well positioned to create the sustainable Green Steel industry leader in Europe. We would thereby contribute to the long-term recovery of the sector and the EU's green deal."
Industrial Info is tracking thyssenkrupp's efforts to move towards green steel. Construction is planned for the first direct reduction plant with an integrated melting unit (blast furnace 2.0) at its Duisburg site in Germany. Tests are being conducted to use hydrogen in a blast furnace, in order to reduce the carbon footprint and produce first quantities of CO2-neutral steel. The integrated direct reduction plant will be operated with green hydrogen and is expected to have an annual production capacity of 1.2 million tonnes. For additional information, see October 16, 2020, article--Direct Reduction Plants Helping Green Transformation in Germany.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Liberty said the non-binding indicative offer (NBIO) is part of a "thyssenkrupp-led process" to sell off its troubled steel division. Liberty Steel, which is part of the GFG Alliance, is a global steel and mining business with annual revenues of about 13 billion euro ($15 billion), employing 30,000 employees in more than 200 locations globally. It said that the possible combination of both companies "would create a strong group well positioned to tackle the challenges faced by the European steel industry and accelerate the transformation to "Green Steel". The deal would effectively propel Liberty Steel from Europe's fourth largest steel company to the region's second-largest steelmaker after ArcelorMittal (NYSE:MT).
The company employs 14,000 people in Europe and produces a wide range of primary and engineered steel products from seven plants located in the Czech Republic, U.K., Romania, Belgium, Luxembourg, Italy and North Macedonia. It has a combined annual rolling capacity of 10 million tonnes per annum. With around 27,000 employees, thyssenkrupp Steel Europe produces about 11 million tonnes of crude steel per year-- making it Germany's largest flat steel manufacturer. The company has also set itself the goal to produce 3 million tonnes of CO2 neutral steel per year from 2030 on and to make its steel production fully climate-neutral from 2050 on. Like many in Europe's steel sector, the company has been hit hard by the COVID-19 pandemic. In April, Industrial Info reported that the company was cutting 3,000 jobs in its steel business as part of a coronavirus "crisis package" and longer-term efforts to improve the performance of the unit. For additional information, see April 6, 2020, article - European Steel Industry Hammered by Coronavirus.
Liberty Steel said that it is convinced that a combination with thyssenkrupp Steel Europe can be the right answer from "an economic, social, and environmental perspective."
It stated: "From an economic perspective, there is potential for a compelling industrial concept given that the businesses are complementary with respect to assets, product lines, customers, and geographic footprint. From a social perspective, Liberty Steel has repeatedly proven to turn around businesses in a way that is loyal to local communities and saves jobs. From an environmental perspective, we are a leader in sustainable industry with a mission to become carbon neutral by 2030. But to transform a whole industry a European approach is required. A joint entity would be well positioned to create the sustainable Green Steel industry leader in Europe. We would thereby contribute to the long-term recovery of the sector and the EU's green deal."
Industrial Info is tracking thyssenkrupp's efforts to move towards green steel. Construction is planned for the first direct reduction plant with an integrated melting unit (blast furnace 2.0) at its Duisburg site in Germany. Tests are being conducted to use hydrogen in a blast furnace, in order to reduce the carbon footprint and produce first quantities of CO2-neutral steel. The integrated direct reduction plant will be operated with green hydrogen and is expected to have an annual production capacity of 1.2 million tonnes. For additional information, see October 16, 2020, article--Direct Reduction Plants Helping Green Transformation in Germany.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
