Media Type: Archive

Industrials group Liberty, part of Sanjeev Gupta’s global GFG Alliance, has recruited Jon Ferriman, one of the UK’s most senior steel executives, as integration director to help lead its expansion in continental Europe.

Liberty has made a binding conditional offer to acquire seven steel producing sites from ArcelorMittal in six European countries, including two major integrated works in the Czech Republic and Romania.

For Mr Ferriman, 53, this will be the latest step in a distinguished 36-year career which began with a mechanical apprenticeship at Llanwern steelworks in South Wales and led most recently to his appointment as Hub Director of Tata Steel UK, heading the company’s entire Strip Products UK business and its UK research and development activities.

Over the intervening years he has held a series of key leadership positions covering mainly flat product manufacturing within Tata Steel UK and its predecessors Corus and the British Steel Corporation, implementing major change programmes and guiding the business through some of the most difficult periods for the international steel sector.

In addition to these prominent operational roles, the Cardiff University mechanical and production engineering graduate and Chartered Engineer has been responsible for major innovation programmes within the UK steel industry.

He served as a board member of ‘Specific,’ the flagship research and development project involving Tata Steel, Welsh Government, Swansea University, and other industrial companies.

In 2014, Mr Ferriman was awarded a five-year honorary professorship by Swansea University Science and Engineering faculty in recognition of his personal contribution to the steel industry and technology.

Commenting on his new appointment, which he takes up on 1st April 2019, he said: “Liberty’s global growth and development over recent years has been extremely impressive and I’m looking forward to being part of this next exciting phase which will see the business become a major new force in the European steel industry.”

Executive chairman of the GFG Alliance, Sanjeev Gupta said: “We are taking on new challenges and scaling new heights, and Jon Ferriman is exactly the kind of talented, dynamic and experienced leader we need to take us through this next period of expansion.”

Sanjeev Gupta’s global GFG Alliance today formally inaugurated Liberty Aluminium Dunkerque, as part of its global network of businesses and declared its intention to expand strongly into France’s industrial supply chain.

Mr Gupta joined staff and up to 350 guests in Dunkerque to formally welcome Europe’s largest smelter, bought from Rio Tinto for around US$500m in December last year, into the GFG fold.

GFG aims to make the 570-worker plant the hub of an extensive manufacturing supply chain providing materials and components for French industry, particularly the automotive sector. The site currently produces 285,000 tonnes of primary aluminium a year.

In confirming this commitment, the British-owned business became one of the first to respond to President Emmanuel Macron’s call during the high-profile ‘Choose France Summit’ this week for more inward investment into the country.

Mr Gupta, who was among over 100 international company chiefs at the President’s summit in Versailles, also announced today that Liberty Wheels France, already a major customer of the Dunkerque smelter, has won it first major contract since the London-headquartered Alliance took over the plant in May last year.

From June, Liberty Wheels France will supply the specialist French micro-car manufacturer Ligier with up to around 40% of its annual requirement for alloy wheels. It is the first contract won since the Alliance acquired the facility, which is the only aluminium wheel manufacturer in France. The group has since implemented a turnaround plan to improve the plant’s efficiency and productivity.

Speaking of the week’s events, Sanjeev Gupta said:

“In a week where I joined other business leaders from around the world in Paris to celebrate France’s attractiveness to foreign investors, I am delighted to be able show two positive examples of why GFG invested here”.

“Firstly I am proud to welcome Liberty Aluminium Dunkerque to the GFG Alliance. Our aim is to make this site and the highly skilled women and men who work there, the cornerstone of our integrated industrial business in France. We will work with local management and staff to develop new products which create even more added-value to the aluminium produced there, both sustaining and creating high-value jobs.”

“We welcome our new colleagues in the knowledge and with pride that they will continue to supply our wheel manufacturing business who are themselves turning their own fortunes around. Together Liberty Aluminium Dunkerque and Liberty Wheels France symbolise our integrated supply chain and business model in action. What we now have is a further French car manufacturer being supplied with wheels ‘made in France’ made out of aluminium from our smelter also ‘made in France’. This is the best reminder, if we ever needed one, of why we chose to invest in France”.

Managing Director of Liberty Aluminium Dunkerque, Guillaume de Goÿs, said:

“Aluminium Dunkerque is very pleased to see the Liberty flag flying at our site. We are eager to play our role within the French supply chain, to support our customers and partners and through doing so, to become known as a Centre of Excellence for Aluminium. We have an ambitious programme to maximise the value of the aluminium we currently produce and to become a preferred supplier to the automotive and other growing industries in France. We’re looking forward to making that journey shoulder to shoulder with our Alliance partners and colleagues.”

Speaking of the Ligier contract win, COO of Liberty Engineering Mainland Europe Philippe Baudon said:

“Winning the contract to supply Ligier is a significant step for our Chateauroux site and for GFG in France. Since taking over the site last year, management and staff have all worked tirelessly to turn the site around – to implement the operational and cultural changes needed to make us more competitive and attract new customers. I am delighted that this hard work is starting to pay off – we know that we faced stiff competition from both Asia and eastern Europe for this deal and we know that our adaptability, technical expertise, competitiveness and proximity to Ligier’s own operations were all factors in this success. Work is already underway to start delivering Ligier’s first batch of French-made wheels in June as part of what I hope will be a close and ongoing partnership”.

International industrialist Sanjeev Gupta today (January 15th) visited Illinois to welcome over 1,000 US steelworkers to the global GFG Alliance and pledged to establish Liberty Steel USA as the country’s largest producer of wire rod within the next year.

The GFG Alliance employs more than 15,000 workers worldwide in metal manufacturing, engineering, energy, mining, financial services and property.

During a visit today to the flagship Peoria, Illinois steelworks, following his acquisition of Keystone Consolidated Industries (KCI) for $320m this month, Mr Gupta promised a big increase in output from Liberty’s US mills and signalled further American acquisitions.

He disclosed that Liberty is already examining proposals to boost permitted liquid steel production at Peoria from 800,000 to 1.1m tons a year and, as part of its GREENSTEEL strategy, is exploring the potential to build a combined-cycle natural gas power plant on the site to cut carbon emissions by half, slash energy costs and enable further expansion of output from the site’s electric arc furnace (EAF).

In addition, he announced that Liberty is looking closely at restarting the second EAF at Liberty Steel Georgetown, South Carolina, adding up to 500,000 tons of capacity there. Liberty, which entered the US with the successful reopening of Georgetown last year, is aiming to secure total US GREENSTEEL production capacity of 5m tons per annum by the end of 2020.

The KCI acquisition raises Liberty Steel USA’s current total EAF melting capacity to 1.8m tons per annum and gives it pivotal plants on the East Coast and in the Midwest manufacturing heartland, as well as 1.5m tons of wire rod rolling capacity, substantial value-added downstream businesses and over 1,300 employees based across Illinois, Ohio, South Carolina, New Mexico, Texas, Georgia, Florida and New York City.

Speaking to management, workers and civic representatives during an inauguration event at Peoria today, GFG founder and executive chairman Mr Gupta said: “This investment is a major vote of confidence in the American steel industry and its workforce. There is a growing desire to buy American-made rather than imported steel and we are very well placed with excellent skills and resources to serve that rising demand. The USA is the largest exporter of scrap and the largest importer of steel in the world so clearly there is an opportunity to produce more steel in the US for the local market from domestic scrap, and we intend to seize this opportunity.”

He said Peoria’s location right at the heart of North America’s largest scrap accumulation area made it an immensely valuable resource in driving Liberty’s nationwide GREENSTEEL strategy which will involve recycling at least 1m tonnes of scrap in the US in 2019 alone, with a target of reaching 5m tonnes within the coming two years.

Chris Armstrong; CEO of KCI said that becoming part of the GFG Alliance would bring multiple benefits to his customers. “Our operations will now benefit from the experience, backing and support of a global business that can also think and act locally. For example, many loyal customers of our downstream products in the US have long asked for our support abroad, so we can now help them take our market-leading US products to their customers worldwide. Also, as part of GFG, we can potentially service customers from many more rod and wire mills, giving them assurance of supply in all circumstances. This improved customer offering, combined with a wider pool of knowledge and stronger operational support will make our US mills more resilient and protect American jobs for the future.”

Congressman Darin LaHood, United States Representative for Illinois’s 18th Congressional District; sent a message of support to the Peoria inauguration event. He said: “It’s encouraging to see a global business such as Liberty investing heavily in the future of American steel and particularly putting its faith in the city of Peoria, which has such an amazing heritage of manufacturing industry and a high-skilled labor force. In view of Sanjeev Gupta’s ambition to grow and add value to his businesses, I am confident that he will work extremely well with the talented team here in Illinois and across other US operations to create a new era of success for this historic enterprise.”

Mayor of Peoria, Jim Ardis said: “This city has an outstanding history of steelmaking, going back well over 100 years, and this investment by the GFG Alliance opens up an exciting new future for the industry here, securing high-quality skilled jobs and, in particular, offering young people the opportunity for attractive and challenging careers.”

We are looking forward to all the exciting opportunities that 2019 has in store.

Reflecting on 2018, GFG Alliance has achieved an incredible amount globally. This video from our Chairman to employees provides some highlights of our achievements from last year, and a glimpse of what 2019 promises to bring.

We look forward to working with our valued employees, customers, suppliers and key stakeholders over the coming year.

Europe’s largest smelter to provide foundation for investment and expansion into Europe

The London-headquartered Alliance said the acquisition of the plant – to be renamed Liberty Aluminium Dunkerque – now paves the way for a downstream investment programme at the plant in order to maximise the value of the aluminium currently made there.

GFG aims to make of the Liberty Aluminium Dunkerque 570-worker smelter, bought from Rio Tinto for around US$500m, a foundation for a wider integrated manufacturing business serving the French and European markets.

To this end, GFG is carrying out feasibility studies on developing from Liberty Aluminium Dunkerque a wider integrated manufacturing business, producing components for the automotive and other growing industries in France centred around the existing 285,000-tonne-a-year smelting operations at Dunkerque.

Today’s completion follows GFG’s acquisition earlier this year of France’s only remaining producer of aluminium vehicle wheels, AR Industries – now called Liberty Wheels France – which was already a key customer of the Dunkerque smelter. The deal marked a significant move into the French downstream manufacturing sector and saved over 90 percent of the jobs at the Chateauroux plant.

The acquisition of Aluminium Dunkerque adds to GFG’s credentials as a significant foreign direct investor in France. The company has moved into new offices on Avenue Kleber in central Paris and the business development team is targeting several other development opportunities in the French industrial, energy and financial sectors.

Liberty has been supported by a syndicate of international banks with a US$350m term loan facility.   The banking syndicate was led by Bank of America Merril Lynch with participation from BNP Paribas, ICBC, ICBC Standard Bank, Morgan Stanley,  Natixis, Barclays Bank PLC, Bank of Montreal and Royal Bank of Canada. Liberty was advised on the transaction by Clyde & Co and Norton Rose with regards to legal matters and Grant Thornton UK LLP in regards to accounting matters.

GFG Executive chairman Sanjeev Gupta said: “Today is a real milestone in our European investment journey and the fulfilment of our promise to establish a firm foundation for a new vibrant and integrated industrial business in France that will create high-value products that sustain high-value jobs.

“Liberty Aluminium Dunkerque and Liberty Wheels France provide excellent facilities, expertise and skilled workforces that enable us to grow strongly through long-term investments. The studies for Liberty Aluminium Dunkerque’s investment in added-value aluminium have confirmed our initial assumptions and we’ll continue our work on developing the investment programme.

“It is a great pleasure to welcome the Liberty Aluminium Dunkerque workforce into the worldwide GFG family and we look forward to mutual sharing of experience and resources across borders that will enable us to expand powerfully in key industries such as the automotive sector. We would like to thank those who have worked with us to reach this point, particularly the Works Council, trade unions, French Government and Hauts-de-France region,” he added.

Jay Hambro, Chief Investment Officer of the GFG Alliance said:

“Liberty Aluminium Dunkerque is a high-performing, profitable asset with modern equipment, excellent transport connections to key markets and high-skilled workforces. There is great potential for expansion, further modernisation and the application of GFG’s GREENALUMINIUM strategy.

“Following our entry to France as an aluminium producer, we look forward to working with partners to introduce other GFG businesses to these jurisdictions. We’re eager to explore opportunities for SIMEC’s infrastructure, resources and highly-successful renewable energy teams as well as our financial services team at Wyelands and real estate specialists in JAHAMA’s as part of a holistic GFG offer.”

Managing Director of Liberty Aluminium Dunkerque, Guillaume de Goÿs, added:

“Aluminium Dunkerque is very pleased to be joining GFG, a move which creates valuable opportunities for our employees and partners. We fully support the GFG strategy to become a Centre of Excellence for Aluminium. Together, we will build an ambitious future, continue to be the supplier of choice for our customers and develop Aluminum Dunkerque in a responsible and sustainable way.”

Liberty Primary Steel – part of Sanjeev Gupta’s GFG Alliance – today announced significant steps towards the transformation of the Alliance’s iconic Whyalla operations, signing contracts worth more than A$600m, representing a significant portion of the overall transformation cost.

In a major move forward, two contracts have been signed today for the design of equipment and construction with contracting partners:

• Danieli, for a new, world-leading, state-of-the-art rail and structural heavy section mill
• CISDI Engineering Co, for a Pulverised Coal Injection (PCI) Plant

Mr Gupta said these components would play a key role in securing Whyalla’s long-term future.

“This transformation will vastly improve the operational, financial and environmental performance of the operations, paving the way for Whyalla to become an enticing, global hub for innovative industry,” Mr Gupta said

“Today’s announcement signifies a major milestone in the Whyalla Transformation Program that will establish our operations as a viable and sustainable facility, producing 1.8 million tonnes of high-quality, high-end steel per year.”

“This now firmly cements GFG’s commitment to Whyalla’s development, and the start of a brighter and more prosperous journey that this city truly deserves.”

Mr Gupta said these particular components – which will now be designed, constructed and commissioned over the next three years – would increase production; reduce costs; and introduce a new product range, opening up new markets and customers.

He said these investments would be financed through a combination of funding sources – including GFG’s own resources and vendor finance – and will likely require support from the South Australian and Federal Governments.

“It’s fantastic that both Federal and State governments and opposition are here with us today to celebrate this momentous occasion – this great industrial endeavour has universal and bipartisan support,” Mr Gupta said.

“Naturally all stakeholders will need to be confident that the transformation will underpin the long-term, sustainable future of the operations. This is the very objective of the program, so I am confident it will win widespread support.”

Mr Gupta said GFG Alliance had already invested almost A$40 million in feasibility studies, and was well progressed in other areas of the transformation, including new Steelmaking equipment and on-site power generation.

City of Whyalla Mayor, Clare McLaughlin, said this was yet another fantastic announcement for the community.

“Most importantly for Whyalla, this project will create thousands of additional construction jobs and several hundred ongoing, with GFG committing to prioritising local skills,” Ms McLaughlin said.

“We will also see world-class skills from across the globe coming to Whyalla, so it will be fantastic exposure for our great city.”

“We are continuing to work with GFG on a number of community developments to ensure the city can grow and transform in unison with their operations.”

Following his ground-breaking announcements on progressing the Whyalla Transformation Program, GFG Alliance Executive Chairman, Sanjeev Gupta, shared plans for a visionary ‘Next-Gen’ mega steel plant for Whyalla, signing an engineering contract with CISDI for the ambitious project.

“Our cutting-edge transformation plans for our existing steel plant are just the beginning of what GFG Alliance has in store for the region,” Mr Gupta said.

“Utilising almost perfect local conditions – our own infrastructure including a deep-sea port; rich local resources; and unrivalled community passion – we now plan to build a new steel plant, one of the world’s largest, right here in Whyalla.

“’Liberty Next-Gen Steel’ will be the largest in the Western world, capable of producing 10 million tonnes per year, with the ability and infrastructure to double capacity in time.”

The project will be based on state-of-the-art technologies and best-in-class environmental measures. It will focus on production of semi-finished steel – slabs, blooms and billets – exported to downstream operations in key strategic and growing markets around the world.

“Using the most advanced technologies and our own local resources, we will aim to be one of the most competitive steel producers globally,” Mr Gupta said.

“Thousands of job opportunities will be created throughout the construction phase and from the plant’s ongoing operations.

“This will see a new generation of steel-makers proudly competing on the world stage, and reflects our desire to transform Whyalla into both an Australian and global powerhouse of industry for generations to come.”

City of Whyalla Mayor, Clare McLaughlin, welcomed the pioneering project.

“This once-in-a-lifetime development demonstrates that GFG is committed to Whyalla for decades to come,” Ms McLaughlin said.

“This is a major boost for our long-term outlook, and gives Whyalla City Council and other industries and businesses more confidence to be able to plan for the future.

“The plant will also have state-of-the-art environmental controls, which is yet another positive for the community on top of the financial investment and job creation.”

Adding KCI’s 1.1mt electric arc furnace in Illinois & market leading downstream operations, the deal positions Liberty as one of the foremost producers of wire rod in the US

Deal combines existing Liberty Steel Georgetown steel plant and is financed via equity, a Revolving Credit Facility from two major North American Banks and a Term Loan from funds managed by BlackRock Financial Management Inc. 

New York, NY—Dec 3, 2018— British Industrialist Sanjeev Gupta’s GFG Alliance (GFG), a global industrial leader with a presence in 30 countries around the world, announced today that it signed a binding agreement to purchase all of the outstanding stock in Keystone Consolidated Industries, Inc. (KCI) from Contran Corporation (Contran). Under terms of the deal GFG Alliance company Liberty Steel USA will acquire KCI, including all its subsidiaries, for $320 million in cash less certain assumed liabilities. Subject only to regulatory review, the purchase is expected to close on or before December 31, 2018.

Keystone Steel and Wire, a division of KCI, has a 100+ year history in the steel and steel products business and a strong reputation for quality and performance. KCI has recently posted its strongest results in its long history and adds a top-producing wire rod facility with a 1.1mt capacity electric arc furnace (EAF), the market leading agricultural fence products of RedBrand®, industrial wire, an MBQ/SBQ bar mill, three welded wire reinforcement mesh facilities and a PC strand facility to the Liberty Steel USA family. KCI has been consistently profitable and has substantially improved its profitability over the last 5 years as it expanded significantly into value added products to augment its original position as a preeminent supplier of low carbon wire rod. The acquisition will vault Liberty into position as one of the leading producers of wire rod in the United States.

Proforma for the transaction Liberty Steel USA will have up to 1.8mtpa of EAF melting capacity, 2mtpa of wire rod rolling capacity, significant value-added downstream businesses and over 1,300 employees. The combined company will have operations in Illinois, Ohio, South Carolina, New Mexico, Texas and Georgia.

The deal is financed by two large North American banks who will be providing an asset backed loan facility and funds managed by BlackRock Financial Management Inc. who will be providing a term loan. GFG will contribute equity and its unencumbered Liberty Steel Georgetown plant to the transaction.

“The Keystone acquisition is a core part of GFG’s GREENSTEEL vision to become a leading U.S. producer of high quality, cleanly produced steel,” said Sanjeev Gupta, executive chairman of Liberty and the GFG Alliance. “As we look ahead to the future, GFG will benefit from Keystone’s century-long history, its robust operations, and its reputation for producing top quality steel.”

“KCI and its businesses offer Liberty the chance to merge our existing U.S. steel business with one of the country’s most productive wire rod operations,” said GFG North American CIO Grant Quasha. “Combined with Liberty Steel Georgetown, KCI will increase our downstream capabilities, create critical synergies, add strong management and provide better value and products for customers as we advance our U.S. steel business to our 5mt pa goal.”

GFG acquired Liberty Steel Georgetown, its Georgetown, South Carolina steel plant, at the end of 2017 from Arcelor Mittal who had mothballed the plant. The Company restarted the plant in June of 2018 and has been steadily ramping production to an estimated 400kt run rate by the first quarter of 2019, with further expansion to follow. GFG has rehired over 100 employees at the site, recruited over 50 new employees, has revitalized the facility and has re-established its reputation to be the premier producer of high carbon wire rod in the US.

Together, KCI and Liberty Steel Georgetown will form the core of GFG’s North American business which the company is looking to grow further with additional acquisitions in the coming months. GFG plans a diverse mix of assets for the U.S. business, ranging from the revitalization of steel plants that had previously been taken offline, such as Georgetown, to those which are operating and performing very well like KCI. While the current portfolio is focused on value added long steel products, the company is actively pursuing additional acquisitions in flat products and further downstream capabilities to drive towards 5mt pa of capacity by 2020.

GFG was advised by Deutsche Bank Securities Inc., Wyelands Capital Ltd. and Norton Rose Fulbright on the transaction. Contran was advised by Stephens Inc. and Gibson, Dunn & Crutcher.

GFG Alliance Executive Chairman, Mr Sanjeev Gupta, has been recognised for his commitment to Sustainability, receiving the prestigious award for Business Leader of the Year, presented by the Climate Alliance.

Mr Gupta was celebrated for his vision and commitment to deliver long-term solutions to customers and cyclical industries, demonstrated through his investment in new generation renewable energy assets, providing reliable and sustainable energy solutions to GFG Alliance businesses, other industries and Australian retail customers.

The Climate Alliance Awards recognise Australian business executives and companies that have demonstrated leadership in the area of managing the opportunities and risks presented by climate change. The Business Leader of the Year award specifically acknowledges an individual who has gone above and beyond ‘business as usual’, by putting effort into new approaches and demonstrating outstanding leadership, increasing awareness of the issues associated with climate change and leads through action.

Through SIMEC Zen Energy, Mr Gupta aims to deliver a step-change in the electricity industry to substantially reduce the cost of dispatchable power in Australia through renewable energy in a sustainable manner, providing long-term solutions to industry, including the GFG Alliance manufacturing businesses.

“Australia is blessed with some of the best sources of renewable energy in the world. It is my belief that long-term sustainable energy solutions are achievable and will benefit industry, but they need to be founded on both economic and environmental principles in order to work properly,” Mr Gupta said.

Through SIMEC Zen Energy, GFG Alliance is investing in renewable energy projects to drive greater penetration of renewable energy into the broader energy market. SIMEC Zen Energy’s current projects include pumped hydro and co-generation of power at Whyalla, South Australia and recently announced plans to build the Cultana Solar Farm which is expected to begin construction in early 2019. The solar farm is expected to offset ~492,000 tonnes of carbon dioxide each year.

On presentation of the award, Ben Scheltus, CEO and Executive Director of the Climate Alliance said: “We had a strong field of nominations. Our Board of Advisors was greatly impressed with Sanjeev’s vision for the company. He is a global leader who has consistently applied sound economic and environmental principles to the risks and opportunities of climate change. By harnessing renewable energy to make steel, he has ensured the sustainability of the SA steel industry.

Mr Gupta was unable to attend the ceremony due to prior travel commitments. CEO of SIMEC Zen Energy, Mr Marc Barrington, accepted the award on Mr Gupta’s behalf at the ceremony held in Melbourne yesterday.

Reflecting on the award, Mr Gupta said: “I am extremely proud to receive this award, it is a great honour for me and for the GFG family. Sustainability is at the core of everything we do and is foundational to our vision to create a sustainable future for industry and society. I strive to create generational change in everything that I do, so to be recognised as an outstanding role model and leader is a great privilege.

 

International entrepreneur Sanjeev Gupta today (November 5th) unveiled a £5m investment to revitalize South East Wales’s last remaining commercial river port, as part of a wider plan to boost industry in the region.

During an inauguration ceremony to formally welcome Bird Port on the river Usk at Newport into his global GFG Alliance, Mr Gupta said the facility, which was first opened in 1900, would become a ‘vital piece of infrastructure’ underpinning new industrial activity, including steelmaking and green energy generation in the area.

GFG’s infrastructure and energy division, SIMEC, plans to double the capacity of Bird Port, which it bought in recent months along with Cargo Services Ltd, the firm which runs freight handling operations at the site.

The port boasts modern undercover storage facilities totalling over 160,000 sq ft and is equipped with a unique double set of gantry cranes spanning the dock, enabling it to handle high-value steel products with minimal risk. It is the only fully-undercover cargo-handling facility built on Britain’s west coast to allow loading and unloading of sea-going vessels in all weathers.

The port is also adjacent to Mr Gupta’s Liberty Steel Newport rolling mill where he plans to create hundreds of new jobs by installing an electric arc furnace for recycling scrap metal as part of the group’s GREENSTEEL sustainability strategy. Today’s event also included formal commissioning of the first phase of a £15m capital investment project to upgrade the rolling mill to further improve product quality and increase process efficiency.

In addition to expanding Bird Port’s capacity to serve multiple clients across the UK, the investment will create new facilities to handle shipments of scrap steel destined for recycling in South Wales. The new investment will also include building 50,000 square feet of waterfront warehousing along with dredging and upgrade work to re-open the currently mothballed second berth at the port.

At present the port handles up to 30 ships a month but the newly-named operator, SIMEC Bird Port, aims to increase this to over 40 ships a month, handling cargoes ranging from steel coil for the automotive industry and rod and bar for the building sector to bulk materials such as aggregates for road construction and agricultural materials.

The port, which is the only facility of its kind in the UK with its own covered rail link, currently employs about 70 people but this is expected to rise to over 100 as business expands at the site.

GFG’s investment plans will also see improvements being made to the deep-water jetty at the steel mill enabling the two ports to work in tandem to the benefit of the regional economy.

Speaking to guests at the inauguration event today Mr Gupta said: “This is a valuable asset for South Wales that can make a substantial contribution to the local and wider regional economy. Our aim is to enable it to achieve its full potential as a port in its own right and as a vital element in GFG’s ambitious plans for the area.

“Newport was where we began our ambitious industrial journey four years ago with the acquisition of our rolling mill in the city and that has now grown into a global enterprise employing more than 14,000 people, Adding this historic port, with its skilled and dedicated workforce, to our portfolio of industrial activities marks another very significant step in our partnership with Wales and in the progress of our business,” he added.

The revamped port is also expected to provide an important supply line for Uskmouth Power Station, owned by another GFG Alliance member company, SIMEC Atlantis Energy plc. The station is set to undergo a conversion from coal power to lower-carbon pelletised waste in order to provide green energy to Liberty Steel Newport.

Richard Jennings, Head of SIMEC’s port activities said: “This is an extremely busy and successful facility which is already doing well in its current markets, but as a member of the GFG Alliance we expect it to go from strength to strength, supporting GFG’s own businesses and serving industrial customers across a wide area, including South Wales, the South West and the Midlands. We’re looking forward to this exciting new era.”

In addition to Bird Port and Cargo Services, SIMEC has also acquired two of Cargo Services’ subsidiary companies – timber merchants Wm. Shapland & Sons and road hauliers, Ryan Transport, both located at Newport.