Sanjeev Gupta, Executive Chairman of sustainable industry leader GFG Alliance, has today signed an agreement with Antonio Sieira, CEO of IGNIS, an integrated energy company and the leading developer of large renewable energy projects in Spain. The partnership between IGNIS and SIMEC Energy Group (SIMEC), GFG’s global energy business, will work towards the development of one of Spain’s largest renewable energy programmes, with around 1.2GW generated from wind and solar energy to be operational by 2023. This will help fuel the development of GFG’s growth in energy intensive industries as well as its mission to be carbon neutral by 2030 (“CN30”).
Both SIMEC and IGNIS have a strong track record of delivering and operating renewable energy projects: SIMEC has around 600MW of existing capacity and is developing a further 2GW of renewable energy plants, including a 280MW capacity solar farm in South Australia, a 160MW onshore wind farm in Scotland and a cutting edge end-of-life waste to energy facility in Wales. IGNIS has developed and currently maintains a 725MW solar farm in Aragón, the largest in Europe, operates and delivers energy management services to 2.7GWs of power generation assets, and currently has a renewable development portfolio of more than 10GWs.
ALVANCE, the international low-carbon aluminium business, part of Sanjeev Gupta’s sustainable industry leader GFG Alliance, has completed its purchase of the Duffel aluminium recycling and rolling mill near Antwerp in Belgium.
Founded in 1946, Duffel is a leading European producer of premium aluminium rolled products and a pioneer in the European automotive body sheets (ABS) market. The plant has the capacity to process 250ktpa and currently reuses around 104ktpa of aluminium scrap material, taking ALVANCE closer to its aim of reaching 1mtpa of capacity. The acquisition of the plant – to be renamed ALVANCE Aluminium Duffel – marks a significant bolstering and expansion of ALVANCE’s downstream portfolio and its ambition to be a leading supplier of value added, sustainable aluminium products to the automotive sector and other industries.
ALVANCE is committed to maximising both the volumes and variety of value-added products produced at the 1,000 worker site and plans to increase the production capacity by significantly investing in the modernisation of its production equipment. Duffel will also benefit from synergies with ALVANCE Aluminium Dunkerque, Europe’s largest aluminium smelter, which will include a direct supply of guaranteed high-quality primary aluminium.
35,000-wheel contract marks the first non-auto sector deal for France’s only aluminium wheel manufacturer
ALVANCE Aluminium Wheels (“Wheels”), France’s only producer of aluminium wheels has won a contract to supply Tyre-Line Original Equipment Ltd – the leader in wheel and tyre assemblies for the UK and European caravan and leisure vehicle markets.
The contract, which will see Wheels supply Tyre-Line with over 35,000 aluminium wheels per year in sizes ranging from 14 to 16 inches, is the first such deal for the Chateauroux-based company to produce wheels outside of the auto sector.
Headquartered in Northamptonshire, Tyre-Line prides itself on supplying its customers with the best quality, value for money products in the market and was looking for a supplier that could design, test and produce wheels to automotive quality specifications.
The quality of wheel assemblies for the leisure market is a top priority for Tyre-Line as while wheels for caravans are typically smaller than those on cars, their load capacity is significantly greater as the weight of the caravan is often carried by two wheels instead of four.
Speaking of the contract, Managing Director of Tyre-Line Edward Musson said:
“Having suppliers delivering quality-assured products via a robust supply chain is of paramount importance to us, so we were only too happy to partner with Wheels to develop a range of products to our stringent design and quality specifications. We partner with our own customers to design wheels that will give their caravans and leisure vehicles an individual styling so it was imperative for us to find a supplier that had design expertise and the adaptability and flexibility to produce and ship our orders quickly. Wheels has all of that in spades and took to the task really quickly, even though it was outside their core business, and have absolutely delivered a great product.”
Visit the ALVANCE Aluminium Group website to read the full media release.
Shiftec to provide LIBERTY Steel with sensor technology to enhance safety and efficiency
Investment from government-backed Innovate UK’s ‘Manufacturing Made Smarter Challenge’
The two-year trial forms part of LIBERTY’s adoption of Industry 4.0 automation
LIBERTY Steel Group and Shiftec, two members of the sustainable industry leader GFG Alliance, are partnering to deploy sensor technology with the potential to enhance safety and improve efficiency at industrial sites.
Under the two-year project, Shiftec will test and pilot its Aquila system, which uses a system similar to GPS to track the precise position of people, equipment and vehicles around factories in real time. The system reduces workplace accidents, enhances the efficiency of movement and integrates with Shiftec’s high-speed, long-range network solution initially developed for remote control operation of equipment. This control solution is building on Shiftec’s Gemini system, which has already been proven in the film and television industry as well as defence.
Shiftec will trial the technology at partner companies in the metals, engineering and industrial sectors including LIBERTY’s Speciality Steels’ site in Stocksbridge and its Pipe Mill in Hartlepool. Also involved in the consortium are the Materials Processing Institute and TSC Simulation of Nottingham.
The technology falls under the umbrella category known as Industry 4.0, or the Fourth Industrial Revolution, whereby artificial intelligence is used to enhance the productivity of workplaces.
Visit the LIBERTY Steel Group website to read the full media release
SIMEC and port operator Qube have demonstrated their long-term commitment to the Whyalla Port operations with the installation of a second Mobile Harbour Crane (MHC), doubling the port’s handling capacity.
The state-of-the-art port handling equipment complements Qube’s existing crane, which was delivered in 2019. It can handle the import/export of a variety of commodities, mining consumables and project-based equipment.
The doubling of handling capacity will make Whyalla Port one of the most competitive ports in the region, further enhancing its appeal to any third parties seeking a capable and competitive operation through which to transport their materials.
SIMEC Mining Executive Managing Director, Matt Reed, said the new crane was testament to Whyalla as a strong industrial gateway for South Australia.
“Since opening the port to third-party operators, we have seen it become an integral part of supply chains across South Australia,” he said.
LIBERTY Steel Group (‘LSG’), part of Sanjeev Gupta’s sustainable industry leader GFG Alliance, has succeeded in its bid to acquire the strategic French steel assets of France Rail Industry business (‘Hayange’) and the Ascoval steelworks (Ascoval). Following the decision in July by the Tribunal de Grande Instance de Strasbourg to award Hayange to LSG, the French government has today given its final approval for the deal which will secure the future of the nationally strategic plants and their 700-strong workforce.
Hayange, located in Moselle, France manufactures a wide range of steel rails for nationally significant infrastructure clients including France’s national rail operator SNCF and RATP, the operator of Paris’ metro system, and is regarded as a strategic asset by the French government. The site, which employs around 430 people, produces over 300,000 tonnes of rail per year. While the French rail market is key to the business, with help from across the LSG network the company will seek to grow sales of rails across Europe and other markets. LSG already has a rail mill supplying the Australian network from its steelworks in Whyalla, South Australia.
Ascoval, based in Saint-Saulve in northern France and which has around 270 employees, was placed into an ad hoc receivership process last year. The plant uses Electric Arc Furnace (EAF) technology and has the capability to produce 600,000 tonnes of steel blooms, billets and other forged products annually from recycled scrap metal. Ascoval will use recycled steel, including recovered scrap rail, to supply Hayange, creating an integrated French GREENSTEEL rail business. Together with Hayange, the plant will create a truly integrated value chain and become LSG’s first steel business in France which provides the platform for further GREENSTEEL production and product developments in France.
GFG Alliance has today confirmed that it has entered into a binding sale and purchase agreement with an entity owned by South32 Limited and Anglo American Plc for the hydro energy-powered Tasmanian Electro Metallurgical Company (TEMCO) smelter in Bell Bay, near George Town in northern Tasmania.
Subject to relevant approvals, TEMCO will join LIBERTY Steel Group, part of the GFG Alliance family, which includes the Whyalla steelworks, SIMEC Mining, and InfraBuild in Australia. This will secure the site’s 250 jobs.
The TEMCO facility has four submerged electric arc furnaces, including a sinter plant and has the capacity to produce around 150ktpa of high carbon ferromanganese and 120ktpa of silicomanganese which is used in the production of steel.
LIBERTY Steel Group, eighth largest steelmaker in the world outside China, purchases a significant volume of ferro alloys every year for its global steelmaking operations. TEMCO is an existing supplier to LIBERTY’s Australian operations.
GFG Alliance Executive Chairman, Sanjeev Gupta said the TEMCO facility will be an important upstream addition that will strengthen its steel making capability in Australia and globally.
“This acquisition will further enhance LIBERTY’s drive to be self-sufficient and fully integrated across the supply chain, complementing our iron ore production in Whyalla, coking coal in Tahmoor and our Cultana Solar Farm to be built in Whyalla.
“By investing in key inputs, such as ferromanganese and silicomanganese we are able to generate value across the supply chain to ensure Australia has a sustainable and globally competitive steel manufacturing sector.
“It will also help neutralise the volatility in the markets, providing us a reliable supply at a stable cost.
Mr Gupta said the acquisition is in line with his strategy to further expand his GREENSTEEL strategy and complements his goal to be carbon neutral by 2030, known as CN30.
“By embracing Tasmania’s plentiful supply of renewable energy, particularly the ability to power the submerged arc furnaces from Hydro Tasmania, the TEMCO facility will support our goal to be carbon neutral by 2030.
“Whether used in a blast furnace route or an electric arc furnace route, ferromanganese and silicomanganese will continue to have a role as important inputs for making steel products, the fact we will be able to produce these inputs using renewable energy is a real boost to our GREENSTEEL strategy.
“While living in Australia, I visited Tasmania a number of times and was impressed by its natural beauty, its commitment to renewable energy and the diversity of its industries. Most of all I was inspired by the Tasmanian Government’s passion for green industry and underpinned by long-term, sustainable and quality jobs.
“The welcome and encouragement the Government extended to me to invest in Tasmania, played no small part in the conclusion of this agreement today. I’m certain it will lead to GFG taking a leading role in the future development of industry in Tasmania.
“I am passionate about industrial communities with a long heritage, their commitment to see their facilities succeed is a testament to the human spirit. I look forward to visiting George Town again as soon as possible,” Mr Gupta said.
Robert Evans, General Counsel and Head of Business Development at GFG Alliance who led this transaction, grew up in Tasmania and has firsthand knowledge of how important TEMCO and other similar manufacturers are to the local economy, said: “It’s most rewarding to be involved in a transaction by which GFG can ensure the sustainable future of this business and establish a platform in Tasmania for future growth and investment”.
The agreement remains subject to regulatory approval.
Sustainable industry leader GFG Alliance has appointed Roland Junck as its new global lead for its CN30 programme, responsible for delivering GFG’s ambition to become carbon neutral by 2030.
The role, which sits alongside Roland’s existing duties as President, LIBERTY Steel Group Europe & UK, will co-ordinate GFG Alliance’s CN30 strategy and activities globally across R&D, technology, partnerships, commercialisation, supply chain, and public policy.
Sanjeev Gupta, Executive Chairman GFG Alliance said: “GFG Alliance’s CN30 programme is sector leading and will transform our industrial businesses with advanced low carbon technologies. Its success will require strategic long-term thinking, a joined-up global approach and collaboration with stakeholders and partners. Roland’s vast operational experience and passion for our GREENSTEEL and GREENALUMINIUM strategies means he’s perfectly placed for this role as we move from planning to implementation to create a truly sustainable future for our industries and the communities we operate in.”
The key pillar in the CN30 programme is GFG’s GREENSTEEL strategy to transform steel making through increased use of steel recycling in electric arc furnaces (EAF), application of low carbon and renewable energy sources to power industrial processes and use of hydrogen instead of coking coal as a reducing agent for iron ore through Direct Reduced Iron (DRI) plants to remove CO2 emissions from steel making.
In the nine months since GFG made its CN30 pledge the group has made significant progress under its GREENSTEEL strategy.
GFG last month announced major GREENSTEEL investments in new DRI and EAF facilities at its Whyalla plant in Australia and its Galati plant in Romania where it signed MoUs with local partners and the Romanian Ministry of Economy, Energy and Business Environment to support delivery. These investments will replace aging industrial plant with modern low carbon technologies that can quickly integrate green hydrogen into its processes as it becomes available at scale and economically viable.
Similar transformation plans have been announced at GFG’s primary steel operations in Ostrava, Czech Republic, including the introduction of Europe’s first hybrid furnace that will allow the business to utilise higher volumes of local steel scrap to reduce the reliance on imported natural resources, which will lower CO2 emissions and enable greater flexibility by switching or blending blast furnace and electric arc furnace steel-making. GFG’s recycling facility in the UK has announced plans to double GREENSTEEL production at its Rotherham EAF to produce GREENSTEEL construction products for domestic infrastructure, and is working with leading plant provider Danielli on future low carbon production developments in the UK.
As part of the company’s GREENALUMINIUM strategy, ALVANCE Aluminium’s smelters are fuelled from low-carbon sources – by hydroelectricity in Lochaber, Scotland, and by nuclear power in Dunkirk, France. This complements aluminium’s properties as a ‘green metal’ for the construction and automotive industries. GFG is actively involved in exploring collaboration opportunities with its industry partners on breakthrough technologies and in further developing the market conditions for green aluminium.
Despite the COVID-19 crisis, GFG’s SIMEC Energy portfolio of projects in solar energy, wind energy and energy from end-of-life waste continue to make progress towards completion. When complete these projects will provide the renewable and low carbon energy sources to help reduce emissions from GFG’s industrial processes by replacing carbon intensive fuels sources such as coal and gas. SIMEC’s renewable power sources open up the opportunity for green hydrogen production for steel, underlying the strength in GFG’s model of combining industry and energy.
About CN30
GFG’s CN30 programme implements low carbon initiatives such as hydrogen steel making, metals recycling, energy efficiency and renewable power across its three core industry brands – LIBERTY Steel, ALVANCE Aluminium and SIMEC Energy – to become carbon neutral by 2030 and create more flexible, competitive operations.
Note to the editors:
GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employs 35,000 people, across 10 countries and has revenues of USD $20bn. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030 (CN30).
GFG Alliance has earned recognition following another year of transformation and growth across the business after Chief Investment Officer Jay Hambro was awarded the ‘Rising Star’ award at the S&P Global Platts 2020 Global Metals Awards.
Mr Hambro sits on the GFG Alliance’s Global Board as Chief Investment Officer as well leading the Mining, Energy and Aluminium business entities. Hambro also oversees all the M&A activities of the GFG Alliance with a global team reviewing and executing transactions across the GFG portfolio.
GFG Alliance’s growth over the last 12 months has been dominated by the acquisition of seven major steelworks and five service centres across seven European countries from ArcelorMittal in 2019. The deal doubled GFG’s workforce, which now totals 35,000 people across the globe.
The €740 million deal catapulted GFG-owned Liberty Steel Group into the top ten of global steel producers, excluding China, with a total rolling capacity in excess of 18 million tonnes and is the largest single transaction undertaken by GFG to date.
The GFG Alliance also grew in the USA, EU, UK, India and Australia as it continues a programme seeking to revive foundation industries by instigating low-carbon steel and aluminium production methods powered by renewable energy.
“The judges were looking for a leader who personified innovation, created opportunities and ultimately delivered results,” S&P Global Platts’ Regional Pricing Director for Americas Metals Chris Davis said. “In selecting the winner, our judges found a hard worker who is full of ideas while also being a team player.”
“I’m delighted to accept this award on behalf of all my hard-working colleagues across the GFG Alliance,” Hambro said.
“GFG’s growth and ambitions have accelerated over the last 12 months, reflected by Liberty Steel Group’s new position as one of the world’s largest steel producers, the creation of our new low-carbon aluminium business ALVANCE and our pledge to be carbon neutral across our steel and aluminium businesses by 2030.”
“We will continue to seek opportunities to utilise our GREENSTEEL and GREENALUMINIUM production methods, with a skilled employee base and sustainability at the heart of our operations.”
Jay Hambro joined GFG Alliance in 2016 following a career in commodities, energy and finance. Mr Hambro has spearheaded a transformational 4 years for the GFG Alliance and laid the groundwork for a rejuvenated industrial sector in the UK, Australia, France, mainland Europe and the USA through US$3 billion of investment.
Jay was previously the Chairman of IRC Ltd, CIO of Petropavlovsk PLC, CEO at Aricom PLC, Manager at HSBC Investment Bank and NM Rothschild & Sons. Jay served as a member of the Pan European Reserves & Resources Reporting Committee (PERC) at its foundation in 2008, is a Fellow of the Institute of Materials, Minerals and Mining (FIMM) and a Liveryman of the Worshipful Company of Goldsmiths.
Notes to the editors: GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employs 35,000 people, across 10 countries and has revenues of USD $20bn. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030 (CN30).
GFG Alliance, has announced a further appointment to the French financial services offering it launched in May, to further bolster its financial advisory, investment banking and M&A capabilities and activities in France and Europe more widely.
Pascal-Olivier Marclay will join the Paris-based team as Managing Director, Corporate and Commercial Banking, France with a remit to expand GFG Alliance’s French investment programme into financial services.
Pascal-Olivier brings a wealth of corporate banking experience having held senior roles at BNP Paribas, UBS Switzerland and most recently at UBAF France, where he led the FI Europe & Americas, Commodity & Structured Finance, Risk Distribution team.
Pascal-Olivier Marclay said: “This is a challenging time for all industries but there are opportunities for those with bold visions to not only invest in and consolidate their core activities but also, where possible, to expand into new and profitable segments. GFG Alliance has shown great ability to realise these industrial opportunities and I’m hugely excited to be joining a team to help identify and capitalise on new prospects to grow both the business and its banking services.”
Sanjeev Gupta, executive chairman of GFG Alliance said: “I am delighted to welcome Pascal-Olivier to our growing French team. There is great capacity for expansion in the investment and corporate banking segments and Pascal-Olivier’s expertise will be key in helping us realise our potential in these sectors, both in France and beyond as an international financial services provider.”
GFG Alliance’s financial services sit within a family office structure and are managed separately from GFG Alliance’s three industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group. Combined GFG Alliance has revenues of $20bn USD and employees 35,000 people across 30 countries.
