GFG Alliance Declares Huge Investment in European Steel Operations

SEATTLE (Scrap Monster): GFG Alliance, owned by Sanjeev Gupta disclosed its plan to invest approximately 2 million euros in its European steel operations. The proposed investment, mainly in its plants in Romania and Czech Republic, is primarily aimed at boosting production and reducing emissions.

The investment is in response to concerns raised on greenhouse gas emissions from the above plants. A part of the investment will be used by the company to address this concern. Consequently, GFG Alliance plans to install electric arc furnaces at the steelmaking facilities, thereby achieving significant reduction in emissions. As it does not involve replacement of coal-fired furnaces, there are no threats of job losses. For the time being, both furnaces will run in tandem.

According to company press release, nearly 1 billion euros will be invested to modernize its Galati operations in Romania. Also, 750 million euros will be invested at the company’s Ostrava steel plant in the Czech Republic. The investment will raise the production capacity of Galati steel plant from 3.6 million tonnes to at least 4 million tonnes over a period of time. Also, Ostrava’s production capacity will see 50% surge from its current capacity level of 3 million tonnes.