UK-based steel, aluminum and renewable energy group GFG Alliance has completed the purchase of the hydro energy-powered Tasmanian Electro Metallurgical Company (TEMCO) smelter in Bell Bay in northern Tasmania, the group said Jan. 5.
TEMCO will now join Liberty Steel Group as part of the GFG Alliance.
The TEMCO facility has four submerged arc furnaces, including a sinter plant, and has the capacity to produce around 150,000 mt/year of high carbon ferromanganese and 120,000 mt/year of silicomanganese used in the production of steel, the group said.
Purchasing both the hydro-powered TEMCO ferromanganese and silicomanganese business in Tasmania from an entity owned by South32 and Anglo American to augment its supply chain, and the Ascoval and Hayange steel assets in France, formerly owned by British Steel, the group will look to directly implement its GREENSTEEL vision in Europe.
GFG Alliance Executive Chairman Sanjeev Gupta said in a statement that the acquisition will play a key role in enhancing Liberty’s ambition to be self-sufficient in the supply chain.
“When we entered into the agreement in August, I flagged that our investment in key inputs such as ferromanganese and silicomanganese would generate supply chain value to ensure a sustainable and globally competitive steel manufacturing sector,” Gupta said. “This acquisition is an upstream integration for Whyalla and all our steel plants globally.”
“Our goal is to be carbon neutral by 2030 and I am proud to invest in a state like Tasmania, which has a plentiful supply of renewable energy resources,” Gupta added.
— Filip Warwick