GFG Alliance Lays Out an Ambitious Plan to Build a Very Large Steel Works
12/13/2018 - The Gupta family’s GFG Alliance is committing more than AU$600 million toward upgrades to its iconic steelworks in Whyalla, Australia, and is planning construction of a massive steelmaking plant at the site, the company has announced.
The company on Monday said it signed contracts with two equipment builders for a new rail and heavy sections mill and a pulverized coal injection (PCI) plant at the facility. GFG Alliance acquired the facility and other assets through its deal to buy Arrium last year.
Work on the rolling mill and PCI plant will take place over the next three years. But in the longer term, the company will look to build a massive steelmaking plant capable of annually producing 10 million metric tons of semi-finished goods – blooms, billets, and slabs – which would be exported to downstream operations.
“This will see a new generation of steelmakers 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,” said Sanjeev Gupta, GFG Alliance’s executive chairman.
“Thousands of job opportunities will be created throughout the construction phase and from the plant’s ongoing operations.”
Gupta said the new plant, dubbed Liberty Next-Gen Steel, would be one of the world’s largest and would take advantage of the facility’s deep seaport and abundant local resources. He also said the company has signed a contract with China’s CISDI for the engineering.
CISDI also will be building Whyalla’s PCI plant. Gupta said that plant, along with the rail and heavy sections mill, which will be built by Danieli, will increase production, reduce costs and allow for an expanded product range.
“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,” Gupta said.