Media Type: Archive

SIMEC Mining and GWA would like to remind the public of the extreme dangers of interacting with train lines after several incidents of vehicles and pedestrians illegally crossing the tracks.

Train drivers have had to be increasingly alert after pedestrians and vehicles were spotted illegally crossing the tracks at non-designated points, failing to stop at crossings and, on another occasion, trespassing within the fenced rail corridor near town.

SIMEC Mining General Manager Operations, Greg McMillan, reminded the public of the need to “swear by safety” and think about the potential consequences of our actions.

“Taking risks such as these, which result in an interaction between the general public and trains, could end in disaster,” he said.

“People have been killed from rail crossing collisions in Australia, so we don’t want a local community member to become a statistic.

“We urge everyone to stay out of the rail corridor area; only cross train lines at designated crossings; always stop at level crossings to check for trains; and never cross while the crossing lights are flashing and the boom gates are closed.”

Mr McMillan said there had unfortunately been numerous train‐related incidents over recent years, including vehicles crossing the tracks illegally; vandalism of surrounding fencing; trespassing within the rail corridor; and interference with trains.

He said the safety of residents was his utmost concern. However, SIMEC Mining would not hesitate to involve authorities and pursue these matters further if it was the only course of action to convey the severity of such actions and the likely consequences.

“As a result of these incidents, we have increased our patrols and surveillance of the train lines for trespassing and illegal activity,” he said.

“We just hope that it doesn’t take a serious injury or fatality – which will have impacts right throughout our community, not just on the individual – for people to realise that this behaviour is extremely dangerous and life‐threatening.”

Anyone who may have information relating to any train‐related incidents is encouraged to contact Whyalla Police on 131 444.

Two political rivals at Westminster teamed up this week for a fact-finding visit in the Highlands to hear the latest on ambitious plans to bring many hundreds of industrial jobs to this part of Scotland.

Secretary of State for Scotland, David Mundell MP, and SNP leader in the House of Commons, Ian Blackford MP, dropped in on the GFG Alliance aluminium smelter and hydro power facilities at Fort William on Tuesday and spoke to senior directors about their aim to invest hundreds of millions of pounds in the region.

Having acquired the assets in December 2016, GFG has since brought forward plans to build a 400-job alloy wheels factory next door, powered by renewable energy.

The smelter is already powered by hydro and bio-liquid generated electricity – making it one of the greenest industrial installations in Britain – and GFG has plans to add wind power to the energy mix to support its expansion and job creation programme both at Lochaber and at its steelmaking facilities in Lanarkshire.

It has further plans to create new economic and recreational activity across its 114,000 Highland estates and is discussing these with local communities and other stakeholders at present.

Jay Hambro chief investment officer for the GFG Alliance said: “It is a pleasure to host both the Secretary of State and the SNP leader in the Commons and we are very encouraged by the level of interest they have shown in our GREENALUMINIUM plans which we believe will make a major positive contribution to the life and economy of the Highlands over the coming years.”

Mr Mundell commented: “The Highlands region needs skilled and sustainable jobs in order to support its communities and economy. That is what the GFG Alliance is delivering, and at the same time providing a boost to the wider Scottish economy. The UK Government, working with the Scottish Government, is determined to support Scottish industry and iconic establishments like the British Liberty Aluminium Lochaber Smelter.”

Ian Blackford whose constituency of Ross Skye and Lochaber includes the GFG plants said: “Local people in the area are watching with interest and excitement what is unfolding here. These plans not only consolidate the future of the smelter but will maximise the value of this long-established facility by creating spin-off manufacturing to provide jobs and careers for residents of the area, particularly our young people.”

Sanjeev Gupta’s GFG Alliance, through its energy division, SIMEC Energy, today (20th Sept 2017) reached an agreement with ZEN Energy to establish a strategic partnership and acquire a majority stake in ZEN, a prominent emerging Australian energy company providing businesses and households with affordable, reliable and tailor-made solutions.

Having last month acquired Arrium, Australia’s largest integrated steel and mining business, GFG Alliance has now taken a major step towards realising its Australian energy ambitions. The opportunity to invest in large-scale power projects to meet its own industrial requirements and support the domestic economy was a key driver for GFG’s strategic entry into Australia.

ZEN has an experienced management team looking to develop and improve the national energy market through partnerships with governments, industries and households. Building on their experience in designing and installing solar and battery storage solutions for residential and commercial customers, ZEN now offers power supply solutions to large industrial customers. ZEN works closely with some of Australia’s largest energy users to reduce costs, increase reliability, and increase the amount of low-emissions energy used in industry.

ZEN uses a combination of energy sourced from new and existing power plants, demand management technologies and energy storage to deliver energy supply solutions at a competitive price. ZEN also manages the development of new renewable energy projects.

The strategic partnership and acquisition of a majority stake in ZEN Energy is an early win in GFG’s 100-day plan following its acquisition of the former Arrium business on August 31. These businesses, including SIMEC Mining Australia, SIMEC Infrastructure Australia and Liberty OneSteel (formerly Arrium), are substantial consumers of energy.

SIMEC ZEN Energy, the new name for the joint venture, will work to improve energy security and reduce the cost of power for GFG Alliance and other businesses in Australia.

SIMEC Zen Energy will become a member of the GFG Alliance and will work closely with SIMEC Energy’s existing global energy team which already has 600 MW of power generating assets in the UK with another 400 MW under development, ranging from solid biomass and liquid bio fuels, to hydro and tidal, to wind and solar, and also cutting-edge waste-to-energy projects.

ZEN Energy will partner with SIMEC to deliver cheaper, more reliable and environmentally sustainable energy for SIMEC’s mining operations in South Australia and Liberty OneSteel’s operations in South Australia, Victoria, New South Wales, Queensland, and Western Australia.

SIMEC ZEN Energy will also project-manage the development of SIMEC Energy Australia’s new large scale energy projects, including solar PV, battery storage and pumped hydro facilities.

Sanjeev Gupta, GFG Alliance’s Executive Chairman, said: “The high cost of energy for Australian consumers is debilitating for the economy and a crying shame for a country so rich in resources. We clearly see a need for industrial groups and energy generators to work together. Long-term sustainable energy solutions need to be founded on both economic and environmental principles in order to work properly. With our partners, we can deliver a step change in the power industry, bringing innovative solutions and new projects to dramatically reduce the cost of dispatchable power. “GFG Alliance is already one of the biggest users of industrial energy in Australia. Given the issues here, it has been a priority for us to take decisive remedial steps. Combining our power expertise developed in the UK, and Zen’s local knowledge in Australia, is a natural partnership.

“ZEN Energy is proudly Australian and brings unparalleled market and technological knowledge to address the challenges faced by the Australian power sector. We’re delighted to partner with them on projects and look to invest for further growth.

“Our main focus, as in the UK, will be renewable energy.

“This is an important milestone for GFG Alliance in Australia; I am excited about this joint venture and the role it will play in transforming the Australian power industry.”

Ross Garnaut, Chairman of ZEN Energy, said: “ZEN has spent many years building the strategy, business models and management and technological capacities to introduce new solutions to Australia’s energy problems of weak competition, high costs, low reliability and unnecessary pollution. We have been looking for the right capital investor and strategic partner to help realise our plans, and have found the perfect match in Sanjeev and the SIMEC Energy team. Their understanding of the energy dilemma this country faces, which is making much of our industry uncommercial and environmentally unsustainable, means we see the market need and opportunity in the same way. We are excited about the future, as this will yield benefits for Australian jobs, investors, communities and the environment.”

The GFG Alliance, which is already investing hundreds of millions of pounds in Scottish and particularly Highlands industrial development, has unveiled plans to bring further benefits to the national and local economy through multiple projects for clean and renewable energy to support manufacturing.

The latest project proposal, announced today [Wednesday 6^th Sept], is a wind farm to be developed by SIMEC Energy of up to 54 turbines at Glenshero in the Highlands that will generate up to 178MW of energy following a total investment programme of up to £170m.

SIMEC says the development of renewable energy across its estate lands will contribute valuable low-cost, low-carbon power for industrial schemes such as the GFG Alliance’s aluminium smelter and planned Fort William alloy wheels factory and its steel mills in Lanarkshire.

A key element of the Glenshero plan is that the steel for the required wind-tower structures could be rolled at Liberty’s Dalzell plant in Motherwell and possibly fabricated at a potential new neighbouring wind tower manufacturing facility.

Community and stakeholder involvement will be key to the project.  Now that investment for the wind project has been given the green light by the GFG Strategy Board, it will proceed to the next step of consultation with the local community and a range of stakeholders, culminating in a planning application being submitted next year.  GFG will also be seeking to bring the local community into the project with opportunities both for shared-ownership and discounted energy costs for local residents.

In addition to the wind energy project, the global GFG Alliance, which owns the Fort William aluminium smelter and associated hydro power stations, has also unveiled a broad spectrum of ideas for the use of its surrounding estate lands. These promise to add many more jobs to the hundreds of industrial posts it has already announced for the area.

GFG is seeking to discuss all of its proposals and ideas with a wide range of community groups and local stakeholders in the coming weeks and months, including:

• Major enhancement of the existing hydro power stations and examining scope for several further small-scale hydro plants around Lochaber and Kinlochleven.
• Investments to upgrade housing and visitor accommodation across the estate
• Development of high-grade facilities for tourists including accommodation and outdoor pursuits such as kayaking
• Major improvements to, and expansion of, farming, fishing and forestry across the estate
• A new helipad to serve both business and emergency services
• Support for individual enterprises related to agriculture, sport and recreation
• Improved access to the estate lands through better signage, parking and other facilities and improved management of natural habitats including peatlands

GFG said it intends to explore further individual projects with local communities and other stakeholders; potentially involving local residents directly in the delivery of projects through community enterprise models such as joint ventures or shared ownership. Part community ownership is one of the options up for discussion for projects, such as Glenshero, and the small-scale hydro schemes. There may be other community benefits such as discounts on energy bills for residents living in the vicinity of the proposed windfarm at Glenshero.

Jay Hambro, chief investment officer for the GFG Alliance and chief executive of SIMEC Energy commented: “Glenshero is a unique project in our portfolio. It would be built in an environment of zero subsidies, using steel rolled and finished in Scotland and then generate clean energy to support the Scottish metals industry.  It is also an exciting opportunity for us to work with the local community and encourage their investment alongside our own. This is truly a win-win project for all parties.”

Duncan Mackison, newly-appointed chief executive of JAHAMA Highland Estates, the GFG division which manages and develops the estate lands, said: “We want to use the assets of the estate in the most productive way to maximise benefit for the local economy and residents. Our aim is a joined-up plan with the different elements working together. For example, the assets of the estate, in whatever form, would feed into our industrial developments to help us to be even more ambitious in our plans for new sustainable manufacturing.”

He said that GFG representatives had already undertaken extensive consultation with communities and stakeholders to identity regeneration opportunities in the Highlands, and the Group was now able to share a range of exciting project options, for further discussion.  “We will engage with all local stakeholders to bring in those interested in investment in the wind project and make sure the local area shares the potential benefit of the energy generation,” he added.

Following these discussions, GFG hopes to publish a blueprint for a revival of the estate lands and reinvigoration of the whole Highland economy. “We look forward to awakening the sleeping giant that is the JAHAMA Highland Estate.” he said.

Global metals, industrials and energy group, the GFG Alliance, today completed the acquisition of Australia’s leading integrated mining, recycling, steel manufacturing and steel distribution business, creating a new future for thousands of workers and their communities.

Executive Chairman of the GFG Alliance, Sanjeev Gupta, and his team, working closely with management and the workforce, will now embark on a 100-day review of the business and finalise a transformation plan to put the 6,000-worker enterprise, on a competitive, sustainable footing.

This will include finalisation of plans for major capital investments across several sites, utilisation of excess production capacity, reduction in raw material costs, greater energy efficiency, the development of new high value-added steel and steel-based products and services for the Australian market and increasing export of iron ore and steel products.

Speaking ahead of tomorrow’s formal handover event at the iconic Whyalla integrated plant in South Australia, Mr Gupta said: “This is a historic moment. After a long period of uncertainty, the GFG Alliance and this highly-skilled and committed workforce can now work together to be the authors of an exciting new chapter in the Australian steel industry. As we now focus on our plans for investment and growth, we have every reason to be confident that this business shall increase its already significant role in supporting the construction of Australia’s future.”

Mr Gupta outlined some key elements of GFG’s intended transformation plan to expand the capability and capacity of its new Australian businesses, including:

• Investing up to US$1 billion across the Whyalla steelworks and mining businesses to:
  • modernise key parts of the plant
  • expand steel-making capacity
  • expand the range of steel grades and downstream products produced;
  • improve energy generation capabilities, including a new co-generation power plant to capture and reuse waste gases, generating on-site captive power.
• Boost capacity utilisation at the world-class electric arc furnaces and rolling mills in Melbourne, Sydney and Newcastle.
• Align, improve, and expand production and service capabilities to capitalise fully on the significant infrastructure project growth in Australia.

In addition, the GFG Alliance is also exploring further potential investments in Australia, including:

• A new state-of-the-art, world class steel plant of four to five million tonnes at Whyalla;
• Major port and infrastructure development;
• Complementary mining activities, including iron ore and coking coal, to ensure raw material supply at stable prices;
• New electric arc furnace capacity to melt more of Australia’s ferrous scrap at home, focused on excess scrap generating regions, pursuing GFG Alliance’s globally renowned GREENSTEEL strategy, creating long-term sustainable value and jobs;
• New large-scale pumped hydro and solar power plants to assist in addressing Australia’s energy imbalance and high energy costs.

Mr Gupta said his core business model is to own and manage as much of the supply chain as possible – adding value at each stage – and, as such, his Australian businesses will benefit greatly from integration with the rest of the global group. An early win, he said, would be the opportunity to make high grade (API) slab at Whyalla to feed the group’s plate mill in Scotland which will be used in the group’s large diameter SAW pipe mills in the North East of England.

He added that low-carbon GREENSTEEL production, recycling local scrap, using renewable energy, remained the group’s guiding principle and this approach would be extended to Australia.

The GFG Alliance executive chairman thanked all stakeholders including local, state and federal governments, the workforce, trade unions, customers and suppliers for supporting the business through challenging times. “Many people have made significant sacrifices and played a critical role in sustaining the operation through the difficult months of administration and we want to pay tribute to them for their patience and resilience which has now given the GFG Alliance this opportunity to take the business forward,” he said.

Australia’s Federal Minister for Industry, Innovation and Science, the Hon Arthur Sinodinos AO said: “The federal government welcomes today’s handover to GFG Alliance and looks forward to working with them and the South Australian Government to promote a globally competitive steel industry.”

Premier of South Australia, Jay Weatherill commended GFG and Mr Gupta for their investment and seeing the potential of the region. He said: “Today, marks the beginning of a hugely promising partnership between Whyalla and GFG Alliance. The vision and strategy that underpins this acquisition means that the livelihoods of thousands of people, who have made great sacrifices along the way, have been secured. South Australia looks forward to seeing Whyalla’s steel integrated into GFG’s global operations and increasingly competing in the global marketplace.”

The former Arrium mining and port operations will now be rebranded as SIMEC Mining and SIMEC Infrastructure divisions respectively while OneSteel and its operating divisions will become Liberty OneSteel. ARC, Austube Mills and product brands such as Cyclone and Waratah will remain unchanged.

The acquisition of the former Arrium businesses, which employ around 6,000 people, builds upon the GFG Alliance’s strong track record of acquisitions and turnarounds in the UK where it is now one of the country’s largest industrial employers with more than 5,000 staff in its Liberty House and SIMEC groups.

The relentless international growth of Sanjeev Gupta’s GFG Alliance has received a further boost with the appointment of leading global banking figure Jean-Francois Lambert as strategic adviser to the metals, industrials, energy and resources group.

Mr Lambert, former Managing Director, Global Head of Commodity and Structured Trade Finance for the HSBC Group, will support the development of Wyelands Capital, the financial pillar of the GFG Alliance, as well as assisting with the continued expansion of the group’s global commodity trading, industrial and energy businesses which have a combined annual turnover of $10 billion.

The Group, which includes metals and industrial business Liberty House and sister energy and resources business SIMEC, is currently pursuing opportunities to acquire assets in several countries across the world, including USA, France, the Netherlands, India and Australia, among others.

During a 34-year finance career Mr Lambert has held a succession of top-level international positions with the HSBC Group and, prior to that, with Credit Commercial de France. During his six years leading HSBC’s commodity and structured trade finance operation he helped the bank become one of the world’s major financial players supporting commodity supply chains, with operations in 15 countries and a team of over 160 frontline specialists.

He is the founding partner of Lambert Commodities which provides bespoke commodity trade and structured finance solutions to producers, traders and investors. As a highly- respected specialist in trade finance he writes regularly on the subject in the media.

Commenting on his appointment as adviser to Wyelands Capital he said: “I am thrilled to be associated with Sanjeev’s vision for the development of an integrated and sustainable global enterprise and am looking forward to contributing to the success of the Wyelands business and the wider GFG Alliance.”

Sanjeev Gupta, executive chairman of the GFG Alliance said: “JF has a huge reputation in the international structured trade finance sector and his expertise will be a major asset to us in the development of our financial services offer and the worldwide growth of GFG as a whole. I’m delighted to welcome him as an adviser to our team.”

Sanjeev Gupta’s GFG Alliance has added to its fast-growing energy, metals, engineering and financial services business with the unveiling this week of JAHAMA, its new property arm, which has global assets and is already the fifth largest private landowner in the UK.

The new entity will be responsible for managing and developing GFG Alliance’s substantial UK and international portfolio of industrial, commercial, agricultural, leisure and residential property portfolios. In addition to its extensive British holdings, the Alliance already has assets in the UAE, India and Thailand and will shortly complete the purchase of a major property portfolio across Australia.

Sanjeev Gupta, Executive Chairman of the GFG Alliance said: “With the rapidly growing scale of our global property interests, it became imperative that we launch a dedicated property pillar within the business. This will make responsible stewardship and development of our estates and property holdings, for the betterment of all stakeholders, a key priority.”

To mark the launch, JAHAMA announced the appointment of Duncan Mackison, former chief operating officer for the largest British private landowner, the Duke of Buccleuch and Queensberry, as Chief Executive of JAHAMA Highland Estates, a key division of JAHAMA. This comprises around 114,000 acres of land neighbouring Fort William, including the foothills of Ben Nevis, Britain’s highest mountain.

Mr Mackison, who will also act as general ambassador for the GFG Alliance in Scotland, will lead discussions with Scottish Government, local authorities, public sector agencies and local communities to develop major industrial, agricultural and recreational projects for the Alliance. He will be heavily involved in GFG Alliance’s economic redevelopment around Fort William, which includes building a largescale alloy wheels manufacturing plant and multiple projects across adjoining lands covering renewable energy, outdoor sports, tourist facilities, forestry and new agricultural activity.

The new Chief Executive, a former Royal Marine, spent many years working in outsourced Government services as managing director of Serco’s defence business before joining the Duke of Buccleuch’s 240,000-acre estates, most of which are in Scotland. He said his work with a substantial public-private partnership combined with his experience running the country’s largest private rural estate equipped him perfectly for his new role at the helm of JAHAMA Highland Estates.

He said: “I am looking forward to this challenge because we have an opportunity to create an exemplar for the running of a large Highland estate; combining traditional rural activity with sustainable industrial activity. We also want to build on the excellent level of partnership with government, public agencies and communities that has not been seen before on this scale.”

Jay Hambro, Chief Investment Officer for the GFG Alliance warmly welcomed Mr Mackison to his new role in Scotland which he described as a ‘pivotal project in JAHAMA’s global strategy.’

“We see our Scottish property assets as a sleeping giant whose potential we intend to realise fully and we aim to bring the same principles of good stewardship and sustainable development we’re employing in the Highlands to our portfolio across the world,” he said.

He added: “We are fortunate to have an excellent team, including the Harrison Rural Consultancy, running this prized portfolio already and now welcome Duncan to the family, whose experience and leadership with no doubt be pivotal in transforming this magnificent estate for the benefit of all stakeholders especially local communities.”

The GFG Alliance chief investment officer added that JAHAMA intended to expand its property assets across the world substantially over the coming years.

Sanjeev Gupta, executive chairman of the GFG Alliance, today (July 19th) met employees as the 300-worker Onesteel Laverton steel plant in Victoria and assured them of a bright future for the business

Mr. Gupta said,” OneSteel’s recycling, steel and distribution business is identical to GFG Alliance’s well published GREENSTEEL strategy. Collecting and processing local scrap, melting and refining it back to high quality steel, rolled into first class rolled products, and then further engineered and delivered with the highest quality service to the consumer is all what our GREENSTEEL strategy is about. OneSteel is already successfully implementing this vision in Australia. The missing piece here is integrated renewable energy generation to bring down cost and produce a truly sustainable product as are implementing in the UK. We will work in earnest through our SIMEC Energy vertical to plug thus gap.

“OneSteel is already a core part of the local economy. However, Australia still exports half the scrap it generates. We will look to use this valuable resource increasingly to expand OneSteel’s GREENSTEEL capacity.

“As we approach the completion of this deal, I want to thank all of the Arrium employees for their commitment and hard work throughout the administration process. I am very confident that with such a proud and resilient work force supporting our plans and ambitions, our investments in Arrium will bear fruit.”

Mr. Gupta added, “In the past few months, our teams have worked around the clock to lay the groundwork for a new visionary company that will deliver a differentiated offering for our customers, bring incredible opportunities for our combined employees, and sustainable value creation for our shareholders”.

Following their visits to Whyalla and Laverton, Mr Gupta and the GFG Alliance team will move on to the OneSteel works at Rooty Hill in Sydney tomorrow, another OneSteel site with steel melting and rolling operations.

GFG Alliance’s acquisition of Arrium has been applauded by UK International Trade Secretary Liam Fox who said: “I welcome the news that such an investment by a British consortium will help share expertise between our manufacturing sectors and safeguard thousands of jobs. The UK is the second largest investor in Australia with over £220 billion of investment, and as Secretary of State for the Department for International Trade, an international economic department, I look forward to ever more opportunities between our two trading nations as the UK leaves the EU.”

The acquisition of Arrium builds on GFG Alliance’s track record of acquisitions and turnarounds in the UK where it is now a key player in the metals, engineering and energy sectors. To date the group has secured the jobs of about 5,000 industrial workers in the UK through its Liberty House and SIMEC businesses.

Sanjeev Gupta, executive chairman of the GFG Alliance, today (July 17th) met steelworkers at the giant Whyalla integrated plant in South Australia near Adelaide and pledged to work tirelessly with management, staff and unions to forge a sustainable future for the whole Arrium business in Australia.

He said the skills of the workforce and the quality of the firm’s products, combined with innovative business strategies and valuable synergies with the global GFG organisation, would provide the basis for a more secure and successful future.

The international entrepreneur was meeting management and staff at the iconic South Australia plant for the first time since GFG sealed the deal to buy the 5,500-employee Arrium business out of administration earlier this month.

Since then the buyer has cleared the two vital hurdles en-route to completing the landmark acquisition at the end of August.

The Australian Government’s Foreign Investment Review Board and the Arrium creditors committee have both given the green light to the transaction, clearing the way for GFG’s top management to begin laying the groundwork for a new era for the huge steel and mining enterprise, which had been in administration since April 2016.

Speaking at Whyalla Mr Gupta said: “The unanimous decision of the creditors’ committee puts an end to a period of prolonged uncertainty for the Arrium workforce. It allows them to look more confidently to the future as they become a part of our large and multi-skilled alliance of international businesses.”

He praised the ‘patience and resilience’ of the workforce and management during the period of the administration. “In the midst of all of this uncertainty the people in the front line at Arrium stuck firmly to their jobs and that is what has given us this opportunity to build a better future for the business,” he said.

The senior GFG team spent several hours at the 1500-employees Whyalla plant discussing strategies for the recovery of the business following this period of instability. This included discussions on renewable energy generation both for the steelworks itself and the South Australia grid.

Afterwards Mr Gupta said: “We have developed a comprehensive plan that we are confident will secure a long-term future for this operation and the community who depend on it. That includes reducing the cost of iron ore feed, modernisation of key equipment, the installation of clean and cost-effective energy generation capacity, expanding production and creating downstream manufacturing opportunities. We are also eager to boost export markets for Arrium products and to capitalise on new links between our Australian steelmaking operations and our rolling mills in the UK.”

He said the Arrium businesses fitted very well into the GFG Alliance’s GREENSTEEL vision for an integrated value-added global business, based on low carbon, sustainable production methods. Following their visit to Whyalla, Mr Gupta and the GFG team will move on to the One Steel works at Laverton near Melbourne, site of a steel melting and rolling operation employing approximately 300 people.

GFG’s acquisition of Arrium has been applauded by UK International Trade Secretary Liam Fox who said: “I welcome the news that such an investment by a British consortium will help share expertise between our manufacturing sectors and safeguard thousands of jobs. The UK is the second largest investor in Australia with over £220 billion of investment, and as Secretary of State for the Department for International Trade, an international economic department, I look forward to ever more opportunities between our two trading nations as the UK leaves the EU.”

The acquisition of Arrium builds on GFG Alliance’s track record of acquisitions and turnarounds in the UK where it is now a key player in the metals, engineering and energy sectors. To date the group has secured the jobs of more than 4,500 industrial workers in the UK through its Liberty House and SIMEC businesses.

Sanjeev Gupta’s GFG Alliance, the international industrial, energy, natural resources and financial services group, has today signed a binding agreement to acquire Arrium, the integrated Australian mining and steel business, out of administration.

The acquisition is expected to secure the jobs of over 5,500 Australian workers, and includes the following steel and steel-related businesses.

• The Iron Ore Mining Operations – producing approximately 10m tonnes per annum of iron ore -haematite and magnetite pellets – for export and internal supply.
• Whyalla Port and Rail
• Whyalla Steelworks – 1.2m tonnes per annum blast furnace operation and Australia’s only producer of rail and hot rolled structural steel products.
• OneSteel Scrap Recycling – A steel scrap and recycling business with a national network of collection and processing facilities handling around 2m tonnes per annum of ferrous scrap and around 250,000 tonnes per annum of non-ferrous scrap for export and internal supply.
• OneSteel Secondary Steelworks –4m tonnes per annum from two electric arc furnaces with three bar and rod rolling mills (Sydney, Melbourne, and Newcastle). The business is Australia’s only producer of rod, bar and wire products.
• Australian Tube Mills – Australia’s largest steel pipe and tube manufacturer.
• OneSteel Reinforcing, ARC and OneSteel Metal Centres – Australia’s leading general steel distributor and steel reinforcing solutions provider to commercial, residential and civil construction; mining; agriculture; and manufacturing sectors.

The acquisition of Arrium builds on GFG Alliance’s track record of acquisitions and turnarounds in the UK where it is now a key player in the industrial, energy, property and financial sectors. To date the group has secured the jobs of more than 4,000 industrial workers in the UK through its Liberty House (steel, aluminium and engineering), SIMEC (energy, infrastructure and resources), GFG Estates and Wyelands (banking, capital and advisory) businesses.

Sanjeev Gupta, Executive Chairman of the GFG Alliance said: “I am thrilled to announce this landmark deal to acquire Arrium, establishing the GFG Alliance as a major participant in Australia’s industrial landscape.

“We have a vision to create a vertically integrated and sustainable industrial business that encompasses mining, metal recycling, primary metal production, engineering and distribution, and which also includes the use of renewable energy consistent with our GREENSTEEL strategy. We aim to leverage the advantages of integration across the value chain, from raw materials and metal production to high-end engineered products, coupled with supply chain and value added financial solutions.

“The Arrium business fits perfectly with this strategy and we believe it has an exciting future leveraging our GREENSTEEL vision which has been well proven in the UK. The acquisition will secure the jobs of over 5,500 Australian workers, a similar number to that which GFG Alliance has saved in the UK.

“Looking forward, we will continue to explore opportunities to further grow our presence in Australia in adjacent and complementary industries, including renewable energy, metals and mining.

“I would like to thank all stakeholders who have worked tirelessly alongside me for over a year on this acquisition. I would also like to thank both the Federal and South Australian Governments for their proactive and collaborative partnership with us in seeking solutions to the challenges faced by the Arrium businesses.”

Michael Morley, Development Director for the GFG Alliance said: “Arrium is well placed to play a significant role in the expected growth in infrastructure spending in Australia over the coming years. The business is endowed with an experienced and skilled workforce, well-run operations, strong brands and long-established customer relationships and we look forward to exploring opportunities to grow the business further.

“Whilst the Whyalla Steelworks has faced well-publicised operational and financial challenges over recent years, we have developed a comprehensive plan to secure its long-term future and that of the local community. Our plan focuses on reducing the cost of iron ore feed, targeted modernisation investments, energy generation, expanding production and creating high value export opportunities. We are particularly excited by the opportunity for the Whyalla Steelworks to directly supply intermediate steel products to our UK rolling mills that are currently sourced from third parties. Whilst our plan remains subject to reaching agreement with Government, we have had regular and constructive discussions with both the Federal and South Australian Governments throughout the sale process and look forward to continuing those discussions now the acquisition has been agreed.”

The binding agreement is subject to limited conditions only, including approval by the Committee of Creditors and approval by Australia’s Foreign Investment Review Board. Completion is expected to occur on 31 August 2017.