Gordon Brothers, a globally recognized asset management firm, has announced its role as the exclusive selling agent for a one-of-a-kind opportunity: the sale of a never-utilized steel production plant capable of producing two million metric tons per annum of high-quality steel products. This rare offering comes from one of the largest and most reputable steel manufacturers in the Gulf Cooperation Council, making it a prime opportunity for buyers looking to enter or expand in the steel industry.
Originally acquired in 2007 from POSCO, a leading global steel producer, the plant was intended to enhance the seller’s manufacturing capacity. However, due to the 2008 financial crisis and subsequent delays, followed by the COVID-19 pandemic, the plant's equipment has remained crated, unused, and stored according to OEM specifications. With the market now stabilizing and the owners opting to abandon their original expansion plans, the near-complete setup is now available for sale, offering an accelerated path for interested parties to fast-track their entry into the steel production market.
An Investment Opportunity Like No Other
“This is a once-in-a-decade opportunity to fast-track the setup or diversification of a small-to-medium-sized steel production plant,” said Nicholas Schofield, Senior Director, Commercial & Industrial at Gordon Brothers. “With this unutilized flat rolling steel output module, buyers can bypass the lengthy lead times and risks that typically come with commissioning new equipment. The plant’s equipment is easily upgradable with modern electronics, ensuring it meets current production standards and offers long-term value to buyers.”
The available assets span a comprehensive range of equipment designed for the production of hot-rolled coils, cold-rolled sheets, steel rods, structural beams, and rebar. This flexibility ensures that the plant can cater to industries such as automotive, construction, infrastructure, and manufacturing, all sectors experiencing a growing demand for high-quality steel. By acquiring this state-of-the-art equipment, steel producers can diversify their product lines and enhance their supply chain capabilities, positioning themselves effectively in the global steel market.
Key Equipment and Assets
The sale includes several crucial and high-value assets, all of which are stored and maintained to OEM specifications:
• STS 4-strand billet caster (2008)
• Rokop 5-strand billet caster (1995)
• Mannesmann DEMAG 2-strand thin slab caster (1998)
• Mitsubishi 5-stand 4-high hot strip mill (1998)
• UBE Industries 700,000 TPA hot skin-pass mill (1998)
• 3 Inductotherm 30T induction furnaces (2008)
• 2 VAI Fuchs 80T electric arc furnaces (2000)
• Nippon Steel Corporation 150T ladle refining furnace (1998)
• 6 Wärtsilä 10.51 MW diesel generator sets (1997)
• 5 Sulzer 10.56 MW diesel generator sets (1994)
• 10 overhead cranes by Hyundai, Samjung, and Bando, ranging from 12T to 110T
These assets provide a robust foundation for steel production, capable of handling a wide range of steel products for various industrial applications. Interested parties can submit offers for the plant in its entirety or opt to bid on individual assets through Gordon Brothers' official platform.
Global Interest in the Plant
According to Phillip Weston, Director, Commercial & Industrial at Gordon Brothers, the plant has already garnered strong interest from potential buyers worldwide. “The level of global interest has been impressive,” said Weston. “This is the final chance for steel mill owners and investors to acquire a nearly complete, unused steel production facility ideal for tapping into the growing demand for flat-rolled steel.”
With the steel industry rapidly expanding and technological advancements at the forefront of production efficiency, this acquisition opportunity comes at a pivotal moment for manufacturers looking to enhance their production capabilities without the lengthy setup times usually associated with commissioning a new plant.
