Metal Center News

JAN 2018

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Metal Industry News USW : Liberty Steel to Start Production in 2018 Metal Center News — January 2018 ❘ 37 P roduction is expected to begin next year at Liberty Steel in Georgetown, S.C., following the completion of the sale of the facility. London-based Liberty House Group agreed to pur- chase the idled rod and wire mill facil- ity from ArcelorMittal in April. The Georgetown facility maintains a 600,000-ton electric arc furnace and a 750,000-ton rod mill. It has been idle since 2015. USW District 1 Director David Mc- Call says workers are expected to begin to return to their jobs in early 2018. "Our track record of operating the George- town steelworks productively and prof- itably for generations under different employers speaks for itself," he says. USW District 9 Director Daniel Flippo says the union established a good relationship with Liberty man- agement during successful negotiations on a collective bargaining agreement to facilitate the restart. For Liberty, the Georgetown opera- tion marks the company's first foothold in the United States. Company execu- tives say Liberty is already in discus- sions regarding the acquisitions of other major U.S. steel assets and the launch of new greenfield projects. It expects to make announcements on its expansion plans in the coming year. "Securing the Georgetown fur- nace and mill is a major milestone for us, marking our first major step in the USA. The melting and rolling facilities here give us a formidable entry to the American market and provide a strong platform for expansion," says Sanjeev Gupta, executive chairman of the GFG Alliance. "We see major prospects for the metals industry here and we want to apply the same Greensteel sustainable strategy to our American plants as we are already delivering in the UK and Australia." Novelis Investing at Warren Facility Novelis Inc., has announced a $4.5 million manufacturing investment at its facility in Warren, Ohio. The invest- ment in technology provides greater versatility for pretreatments, improves operational efficiency and reduces costs over time, the company claims. Novelis's Warren facility applies coating to rolled aluminum sheet. The sheet is then used for production of lids for the tops of aluminum bever- age cans, producing enough for more than one billion beverage can lids each month. "We are thrilled to announce this local investment," says Paul Nelson, plant manager. "Due to a steady U.S. can market and Novelis' strong finan- cial performance across the globe, we are making the investments necessary to sustain our operation here in Warren for many years to come." C ommercial Metals Co. an- nounced plans to acquire certain U.S. rebar steel mill and fabrication assets from long and specialty steel products producer Gerdau. The companies entered into a definitive agreement worth $600 million, which includes acquisition of 33 rebar fabrication facilities in the U.S. and steel mills in Knoxville, Tenn.; Jacksonville, Fla.; Sayreville, N.J.; and Rancho Cucamonga, Calif. Total annual mill rolling capacity at the sites is 2.5 million tons, according to Commercial Metals. "This acquisition aligns with our strategy to focus on our strength in concrete reinforcing products and leverages CMC's core competencies in rebar production and value-added fabrication services to non-residential construction customers," says Barbara Smith, president and CEO of Com- mercial Metals. "In addition, these assets provide us the opportunity to optimize our product mix more fully in the U.S." The move will help Commercial Metals expand its geographic foot- print in large construction regions in the U.S., as well as increase the company's annual rebar and fabrica- tion capacity. At the close of the transaction, Commercial Metals says it expects approximately 7.2 million tons of global melt capacity. "Over the past several years we have repositioned our portfolio to focus on our core strengths of verti- cally integrated steel manufacturing and fabrication services, as well as strengthen our balance sheet placing us in the optimal position to take ad- vantage of this unique growth oppor- tunity," says Smith. "We plan to invest in these facilities to create efficiencies utilizing our expertise in the latest innovations for steel manufacturing and fabrication." The transaction, which is sub- ject to the satisfaction or waiver of customary closing conditions and cus- tomary regulatory review, is expected to close sometime in 2018. Commercial Metals to Purchase U.S. Rebar Assets from Gerdau

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