GFG Alliance, owner of the Liberty House metals group, said on Monday that it plans to consolidate its global steel business into a "more suitable financial and legal structure."
The group is working to create a new corporate structure that will hold the GFG Alliance steel mills, which are currently separate divisions around the world, a group spokesman said in a statement. The combined turnover of metallurgical enterprises, including processing assets, is more than USD 10 billion, while the group's total turnover has recently been more than USD 20 billion.
"There will be a single balance sheet and a single set of accounts, but within this framework, our enterprises will continue to be managed with a high degree of autonomy," said a spokesman for the alliance.
Last month, Liberty Steel officially opened seven European steel plants and five large steel service centers, which it acquired from ArcelorMittal in a € 740 million (approximately $ 707 million) deal, giving Liberty a total rolling capacity of over 18 million tonnes. per year and makes it one of the world's largest steel producers.
Despite weakening demand in European steel markets, Liberty said it intends to increase sales at these newly acquired sites, with a combined throughput of more than 10 million tonnes per annum and a steel production capacity of 6.3 million tonnes per annum by about 50% over the next three years.
A spokesman for the GFG Alliance said that work on developing a new corporate structure is at an early stage, but he plans to announce additional details of the restructuring by the end of the year.
As a reminder, recently chapter Liberty Steel Sanjiv Gupta had to make excuses to journalists for opaque funding acquisitions and possible attempts to cover up the speculative nature of their transactions.
“Supply chain finance and asset-based lending remain an important source of finance for the non-listed company and our long-term intention is to go public as our businesses merge,” Gupta said.
