Trinidad and Tobago Steel Co. Takes Over Arcelor Mital Steel Plant

Europe: TT Iron Steel Company Ltd has acquired the ArcelorMittal Point Lisas iron and Steel plant located in Couva's Point Lisas Industrial Estate by signing a sales and purchase agreement. The acquisition was followed by an announcement from TT Iron that they plan to renovate the plant in the next two years, costing them around TT$1-1.4 billion (US$150-200 million). The plant is one of the most significant Steel mills in the Western Hemisphere, known for its environmentally friendly approach that involves using Direct Reduced Iron technology powered by natural gas in combination with Electric Arc Furnaces for producing Steel.

Gus Hiller, the founder, and Group CEO expressed optimism in the ArcelorMittal Point Lisas iron and Steel plant's capacity to emerge as a global leader of Steel production. The TT Iron Steel Company Ltd is confident about the operation of an innovative and well-functioning Steel mill, as per Hiller's statement. Production will commence within a year to a year and a half, he added. The refurbishment phase is expected to generate employment opportunities for nearly 1000 individuals, with long-term prospects for 500 skilled workers when the plant reaches full capacity. TT Iron anticipates that the restart of the plant will indirectly create many employment opportunities, including maintenance and construction services, port services, downstream manufacturing, etc. Additionally, TT Iron emphasizes its environment-friendly approach, utilizing natural gas in furnaces, which will bring down Carbon intensity to 0.4 tonnes of Carbon Dioxide (CO₂) per tonne of Steel produced as opposed to traditional coal-blast furnaces that emit 2.0 to 2.5 tonnes of CO₂ per tonne of Steel.

While ArcelorMittal Point Lisas iron and Steel plant traditionally relied on natural gas, TT Iron intends to switch to green hydrogen as it becomes economically feasible. Trade Minister Paula Gopee-Scoon stated that the sale of ArcelorMittal indicates Trinidad and Tobago's appeal as a preferred investment destination. She said the acquisition would prompt new investment, increased job opportunities, and several prospects. The reopening of the plant would be advantageous for the scrap-iron industry, as the government is taking steps towards legitimizing it as an industry, she added.

The acquisition of ArcelorMittal Point Lisas iron and Steel plant is expected to foster the scrap-metal industry's growth and integration into the value chain, leading to higher value-added product manufacturing. The production process of iron and Steel requires a specific grade of scrap as inputs and generates scrap during production, providing opportunities for both backward and forward linkages in the value chain. While Christopher Kelshall, liquidator of ArcelorMittal's assets in TT, refrained from disclosing the sale price, he confirmed that TT Iron was among the bidders for the plant and had progressed the furthest in the acquisition process. Aeternus Steel Holdings, a joint venture between a local company and Dubai investors, reportedly won the bid in 2019. However, Kelshall stated that the company failed to complete the sales purchase agreement.

In 2016, owing to the sharp decline in global Steel prices, ArcelorMittal ceased operations at its Point Lisas industrial estate plant. Recently, TT Iron Steel Company Limited signed a sales and purchase agreement to acquire the ArcelorMittal Point Lisas iron and Steel plant situated in Couva's Point Lisas Industrial Estate. The company announced the acquisition stating that it plans to commence refurbishing the plant over the next two years with an estimated cost of TT$1-1.4 billion (US$150-200 million). The plant is one of the largest Steel mills in the Western Hemisphere, leveraging low Carbon emission, natural gas-based direct reduced iron technology in tandem with electric arc furnaces for Steel production.

According to Founder and Group CEO Gus Hiller, the plant has immense potential to reclaim its position at the forefront of global Steel production. We are confident that we can establish and operate an efficient, modern Steel mill," he asserted. Production is expected to commence within 12 to 18 months. The refurbishment phase alone should generate nearly 1,000 jobs. When fully operational, the plant will provide long-term employment for 500 skilled workers. TT Iron anticipates that the plant's reopening will indirectly create numerous employment opportunities such as those in maintenance and construction services, port services, downstream manufacturing, and more.

TT Iron has stated that utilizing natural gas in the plant's furnaces will significantly lower its Carbon intensity to 0.4 tonnes of CO₂ per tonne of Steel produced, in contrast to coal-blast furnaces that emit 2.0 to 2.5 tonnes of CO₂ per tonne of Steel. While the plant has traditionally relied on natural gas, TT Iron plans to shift to green hydrogen in the future once it becomes commercially feasible.