Liberty Steel won the bid for Hungary’s Dunaferr for $61 million, adding significant steel-making capacity to its portfolio but also inheriting operational challenges and financial instability.
a bid to take over Hungary’s Dunaferr. According to Hungary’s Ministry of Economic Development, a local court put the integrated flats producer into liquidation in late 2022. Liberty will pay €55 million for the Dunaferr plant, beating out India’s Vulcan Steel, Ukrainian group Metinvest, Swiss-based Trasteel Trading, and local company Trinec Property.
In its July 11th statement, the Ministry stated that Liberty originally submitted its bid on July 7. However, the organization also noted that the “hard work is just beginning. The government is committed to an outstanding green transition for the future of the steel industry.” They also went on to add “The operation of the factory is in need of reorganization.
Dunaferr has two blast furnaces, which can produce about 1.2 million metric tons per year of pig iron. It also has two 135-ton basic oxygen furnaces to convert that iron into about 1.6 million tons of crude steel. In addition, the site has a twin-stand vertical caster capable of producing 1.7 million metric tons of slab in 230mm gauge and in 860-1550mm widths. Meanwhile, Dunaferr’s hot rolling mill can produce hot rolled coil with a maximum width of 1,540mm and in 1.2-18mm gauges.
Further downstream, Dunaferr can produce cold rolled coil in 0.4-2.5mm gauge and a 550-1,540mm width. Information on the company’s website also noted that the site has a hot-dipped galvanizing line.One source expressed reservations about Liberty’s acquisition considering the company’s current situation and. Indeed, Liberty currently faces a number of lawsuits in connection with debts related to financier Greensill’s 2021 collapse.
The source also noted that Dunaferr has suffered from a lack of investment in all areas since 2008. Russia’s VEB.RF, previously known as Vnesheconombank, ended its funding to the previous owner. Industrial Union of Donbass was forced to end their ownership as a result of the financial crisis. The source added that Liberty does not own captive resources, which could complicate the acquisition of needed feedstock for Dunaferr’s hot end.
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