GFG Alliance Announces Acquisition of Adhunik Metaliks & Zion Steel

On 18th Feb'20, Gupta Family Group Alliance (GFG Alliance) owned by businessman Sanjeev Gupta, announced that it has completed the strategic acquisition of Adhunik Metaliks Ltd (Adhunik) and Zion Steel Ltd (Zion). The transaction marks the Alliance's entry into India - one of the world's fastest growing steel markets.

GFG Alliance will introduce its GREENSTEEL model to revive the steel plants - combining steel recycling with low carbon and renewable power sources - to create a more sustainable, competitive operation serving local markets.

Commenting on the acquisition, Executive Chairman of GFG Alliance, Sanjeev Gupta, said: "Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India - one of the fastest growing and most vibrant steel markets in the world. We see huge potential in this business through the introduction of our GREENSTEEL model to create a competitive, sustainable operation to serve the local market.

Adhunik is an integrated steel plant located at Chadrihariharpur near Rourkela in Odisha. The plant has both blast furnace and Electric Arc Furnace steel making capability with 0.5 MnT pa capacity, and a 34MW captive power plant. Adhunik along with Zion Steel, its associated steel rolling facility, has a combined rolling capacity of 400,000 MT pa. The sites produce products for the automotive, energy, engineering and oil & gas sectors.

The immediate focus will be on reviving and restoring the facilities and operations, and once stabilised the business will begin its integration into the LIBERTY Steel Group. In Oct'19 GFG Alliance announced the consolidation of its steel businesses into one global entity - the LIBERTY Steel Group - the 8th largest steel producer in the world outside China, with operations in 200 locations in ten countries.