The UK steel conglomerate GFG Alliance has recently made it to the headlines for acquiring Keystone Consolidated Industries Inc., a leading steel & wire manufacturer based in the U.S. Reportedly, the USD 320 million transaction deal is an attempt of GFG’s growing efforts to expand into the U.S. market.
The British steel industry magnate, owned by industrialist Sanjeev Gupta, will reportedly purchase all the outstanding stocks of Keystone and is expected to gain a strong foothold in central Illinois, state sources close to the matter.
Mr. Gupta revealed in a statement that the Keystone acquisition is an integral part of GFG’s GREENSTEEL vision to become a leading producer of clean and fine-quality steel in the U.S. He further claimed that GFG will benefit from Keystone’s age-old history, its image as a producer of top-quality steel, and its robust operations.
Illinois State senator Dave Koehler, D-Peoria, praised the development as a good sign for the Bartonville mill and for its thousands of employees. He further noted the track record of Liberty Steel USA (a subsidiary of GFG Alliance) for the revival of local steel operations as it executes its plan to work in North America.
It has also been reported that the UK-based steel company has built its sites on a steel capacity of 5 million tons. In its effort to achieve the goal, GFG planned to invest $1 billion in year 2018 and another $4 billion in the coming years in both Canada and the United States.
According to authentic sources, GFG Alliance has preferred to power its functions with renewable energy and has also invested in hydroelectric assets in Scotland, for an aluminum smelter. It is further planning to adapt a similar model for the U.S-based facility.
It has been reported that GFG’s acquisition includes all Dallas-based Keystone subsidiaries, with operations in South Carolina, Texas, Illinois, Georgia, New Mexico, and Ohio.
The deal is slated to complete by the end of the month.