British-headquartered global metals, industrials and energy group, the GFG Alliance, has completed the acquisition of Australia’s leading integrated mining, recycling, steel manufacturing and steel distribution business, creating a new future for thousands of workers and their communities.

Executive chairman of the GFG Alliance, Sanjeev Gupta, who lives near Chepstow in Monmouthshire, and his team, working closely with management and the workforce, will now embark on a 100-day review of the business and finalise a transformation plan to put the 6,000-worker enterprise, on a competitive, sustainable footing.

This will include finalisation of plans for major capital investments across several sites, utilisation of excess production capacity, reduction in raw material costs, greater energy efficiency, the development of new high value-added steel and steel-based products and services for the Australian market and increasing export of iron ore and steel products.

Mr Gupta, who also owns Liberty Steel in Newport, said: “This is a historic moment. After a long period of uncertainty, the GFG Alliance and this highly-skilled and committed workforce can now work together to be the authors of an exciting new chapter in the Australian steel industry. As we now focus on our plans for investment and growth, we have every reason to be confident that this business shall increase its already significant role in supporting the construction of Australia’s future.”

Mr Gupta said his core business model is to own and manage as much of the supply chain as possible – adding value at each stage – and, as such, his Australian businesses will benefit greatly from integration with the rest of the global group. An early win, he said, would be the opportunity to make high grade slab at Whyalla to feed the group’s plate mill in Scotland which will be used in the group’s large diameter SAW pipe mills in the North East of England.

The former Arrium mining and port operations will now be rebranded as SIMEC Mining and SIMEC Infrastructure divisions respectively while OneSteel and its operating divisions will become Liberty OneSteel. ARC, Austube Mills and product brands such as Cyclone and Waratah will remain unchanged.

The acquisition of the former Arrium businesses, which employ around 6,000 people, builds upon the GFG Alliance’s strong track record of acquisitions and turnarounds in the UK where it is now one of the country’s largest industrial employers with more than 5,000 staff in its Liberty House and SIMEC groups.