Steel Mills
Liberty Steel to Acquire, Restart Idled Bayou Steel
Written by Sandy Williams
December 27, 2019
Liberty Steel Group has been named the preferred buyer for structural steel and merchant bar producer Bayou Steel Group. Liberty Steel, part of the GFG Alliance, will acquire the company for $28 million and plans to restart idled operations at the steel mill in LaPlace, La., by 2021. Liberty expects to have the recycling operations functioning by the second half of 2020.
The acquisition of Bayou will expand Liberty’s existing U.S. steel business that includes operations in Illinois, Ohio, New Mexico and South Carolina. The group is pursuing a GREENSTEEL strategy of focusing on renewable sources of energy and recycled materials, with a view to moving towards carbon-neutral steel production by 2030.
Sanjeev Gupta, executive chairman of GFG Alliance, sees “good potential for the business” once upgrades and modernization of the Bayou Steel mill are completed to make the mill more competitive. The Louisiana location has reliable access to supplies of recycled steel, competitive power prices and its own deep-water port, said Gupta. The mill has been idled since September 2019.
“Our immediate focus will be on restoring the steel recycling supply chain and operations at the facility,” said Grant Quasha, GFG Alliance’s chief information officer for North America. “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.”
The transaction is expected to close on Jan. 30, 2020.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AISI: Raw steel production ticks back down
US raw steel output declined last week after increasing the week prior, according to the latest data from the American Iron and Steel Institute (AISI). Output has see-sawed from week to week since mid-August. Still, it has remained historically strong over the past four months and has held near multi-year highs since June. Domestic mills […]
Gerdau reshapes North American footprint as tariffs squeeze long steel imports
Gerdau is repositioning its North American business to capitalize on a sharp shift in steel trade flows driven by elevated tariffs across the US, Canada, and Mexico.
CRU: Interest in AHMSA is growing
Representatives of at least six companies interested in acquiring AHMSA have reportedly begun to carry out physical inspections of the insolvent company’s assets.
USW urges Algoma to diversify product line as $500M lifeline meets wider Q3 losses
The United Steelworkers (USW) is pushing for transparency after Algoma Steel announced earlier this week that it has received CA$500 million in financing from the Canadian government.
Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.