GFG Alliance Restarts a South Carolina Mill, and Eyes Other U.S. Acquisitions
06/26/2018 - The Gupta family’s GFG Alliance is targeting 5 million tons of American EAF capacity in the next two to three years and is looking to acquire supporting scrap operations, executive chairman Sanjeev Gupta said Tuesday.
Speaking during the Steel Success Strategies conference in New York City, Gupta said the family business is interested in the U.S. because it is both the biggest exporter of scrap and the largest importer of steel and historically has had good spreads.
“The opportunity is obvious,” he said.
GFG Alliance officially became a player in the U.S. steel market on Monday, inaugurating a restarted wire rod mill in Georgetown, S.C. GFG acquired the mill last year from ArcelorMittal, which had permanently closed the facility in 2015.
Along with furnace capacity, Gupta said the company is in the market for scrap operations.
“We intend to see how much more scrap business we can accumulate.”
He told conference attendees that GFG is focused on growth through brownfield acquisitions. To that end, the company is planning to invest US$5 billion in the U.S. and Canada in the next several years. Of that, it is setting aside US$1 billion for investments in the coming year.
