In a significant development, Liberty Steel has announced the acquisition of Dunaferr's assets, signaling a transformative phase for the Hungarian steel industry. This British-Indian conglomerate has orchestrated a monumental agreement with the China Export & Credit Insurance Corporation, Sinosure, securing a loan of EUR 1.3 billion. This financial infusion is earmarked for the long-awaited modernization of the ironworks in Dunaújváros, Central Hungary, aiming to rejuvenate the facility with cutting-edge sustainable technologies.
The loan agreement with Sinosure is poised to catalyze further grants and guarantees, solidifying the financial structure necessary for this ambitious venture. Central to this modernization effort is the replacement of outdated coal-based steel production methods with avant-garde sustainable technology. This includes the installation of two state-of-the-art 150 metric ton capacity electric arc furnaces and the refurbishment of the secondary metallurgical plant. These enhancements will enable the recycling of steel scrap and the direct reuse of reduced iron pellets, aligning with global sustainability standards.
The comprehensive €1.3 billion investment package extends beyond the core modernization. It encompasses the refurbishment of the existing hot rolling mill and galvanizing line, alongside the establishment of new production lines. These enhancements are designed to bolster Hungary's manufacturing base, particularly in the defense and automotive sectors, thus amplifying the strategic importance of this project for the national economy.
The announcement coincided with a visit from Sinosure representatives to Liberty Dunaújváros. These representatives are conducting rigorous technical and feasibility studies to finalize the specifications for the new ultramodern steel plant. This facility is envisioned to epitomize green steel production, positioning Hungary at the forefront of sustainable industrial practices.
Thomas Gangl, CEO of Liberty Steel Europe, lauded the agreement as a pivotal milestone. He emphasized that this development would lay the groundwork for transforming the Dunaújváros mill into a modern green steel plant, equipped with the latest sustainable steel production technologies. His sentiments were echoed by Gergely Fábián, State Secretary for Industrial Policy and Technology, who highlighted the project's strategic significance and its potential to revitalize Hungary's industrial landscape.
