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ISG to Buy Idled HBI Facility in Trinidad and Tobago
05/12/2004 -
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ISG to Buy Idled
HBI Facility
in Trinidad and Tobago
May 12, 2004 — International Steel Group Inc. has signed an agreement to purchase substantially all of the assets, and assume certain of the liabilities, of the idled Cliffs and Associates Limited (CAL) CircoredTM Hot Briquetted Iron (HBI) facility located in Trinidad and Tobago.
HBI is a high-quality scrap substitute that can be used as an iron source in steelmaking operations. HBI can also be used to increase the efficiency of blast furnaces and thereby reduce the use of coke. |
The transaction, which is subject to customary closing conditions, is expected to close by the end of the second quarter. Terms of the transaction were not disclosed.
The HBI facility has the capacity to produce approximately 500,000 tonnes of hot briquetted iron annually.
| The HBI process uses natural gas to reduce iron ore fines to yield a low-cost scrap steel substitute. |
"Given continuing strong global demand for steel and the rising prices of raw materials, the HBI technology offers an economically attractive option to other raw materials," said Rodney B. Mott, ISG's President and CEO. "The Trinidad and Tobago facility is strategically located near natural gas reserves. This provides an inexpensive source of energy for the production of HBI." Mott added that the company expects to begin HBI production within approximately 90 days once the purchase is complete.
The Trinidad and Tobago HBI project began in the mid-1990s as a joint venture between Cleveland Cliffs, Lurgi Metallurgie (now known as Outokumpu Technology GmbH), and LTV Steel. Production began in 2000 but ceased a year later as a result of depressed global scrap iron and HBI prices, changes in the makeup of the joint venture, and other factors.
International Steel Group Inc. is the second-largest integrated steel producer in North America, based its capacity to cast more than 18 million tons of steel products annually. It ships a variety of steel products from 11 major steel producing and finishing facilities in six states, including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, rail products and semi-finished shapes serving the automotive, construction, pipe and tube, appliance, container and machinery markets.
Headquartered in Cleveland, Ohio, Cleveland-Cliffs Inc. is the largest producer of iron ore pellets in North America and sells the majority of its pellets to integrated steel companies in the United States and Canada. The company operates six iron ore mines located in Michigan, Minnesota and Eastern Canada.
