In a statement, Liberty Steel said its US$28 million offer comes with plans to restart recycling operations in the second half of 2020 and steel production in 2021. Bayou makes structurals and merchant bar.

“We put together a compelling bid to save the business, and we see an excellent fit in terms of our group values, our existing operations in the U.S. and the wider ambitions of the Liberty Steel Group globally,” said Grant Quasha, GFG Alliance’s chief investment officer for North America.

“Our immediate focus will be on restoring the steel recycling supply chain and operations at the facility. Once fully upgraded and operational, the business will bring our total production capacity in the U.S. to 3 million tons per annum, moving us closer to our target of an aggregate 5 million tons of steel production in the U.S.”

Liberty Steel has been cobbling together U.S. assets, first acquiring a shuttered ArcelorMittal wire rod plant in Georgetown, S.C., and later Keystone Steel & Wire in Illinois. The company said the Bayou acquisition, which is to close on 31 January,  adds scale to its U.S. operations. Liberty has assets in Illinois, Ohio, New Mexico and South Carolina.

“We look forward to welcoming Bayou Steel into the GFG Alliance family. While the plant requires upgrades to be restarted competitively, we see good potential for the business. Bayou benefits from reliable access to supplies of recycled steel, competitive power prices and its own deep-water port,” said GFG Alliance executive chairman Sanjeev Gupta.