Steel company buys ArcelorMittal plant

■ Andrea Perez-Sobers

andrea.perez-sobers @trinidadexpress.com

ARCELORMITTAL Point Lisas Ltd, which shut its doors in 2016, now has a buyer.

Initial refurbishment and restart of the ArcelorMittal plant is expected to cost $1-1.4 billion over the next 24 months with further investment required thereafter.

TT Iron Steel Company Ltd signed a sale and purchase agreement with the liquidator of ArcelorMittal Point Lisas Ltd Christopher Kelshall to acquire the iron and steel plant at Point Lisas Industrial Estate, Couva.

In a media release yesterday, TT Iron Steel Company Ltd said the completion of the transaction is subject to approval by the Government.

ArcelorMittal decided to close its operations at Point Lisas on March 11, 2016, as the company said it was no longer economical in the short or long term to carry on doing business in Trinidad.

Their workforce of 644 was terminated.

The termination of the steel plant's workforce came on the day after the company was found to be in breach of several labour laws by the Industrial Court and ordered to make payments to workers.

TT Iron further stated in the release that it believes that the restart of the plant will indirectly create many more jobs - for instance through maintenance and construction services, port services, downstream manufacturing demand for green hydrogen and renewable energy, etc.

Great business environment

Founder, president, and chief executive officer Gus Hiller said there is great potential for the plant to return to the forefront of global steel-making technology and performance.

'Our team was drawn to this country due to its strategic location, skilled workforce, potential to be a hydrogen leader and an enabling business environment. We are confident we will be able to bring on stream and operate an efficient, cutting- edge steel mill which we expect and hope will start production within the next 12 to 18 months; certainly, no later than December 2024,' Hiller said.

He said the restart of this plant will create a long-term sustainable industry that generates secure employment and wealth for the citizens for generations to come.

And, chairman of TT Iron Joel 'Monty' Pemberton said: 'The company is passionate about the development of the downstream manufacturing sector of higher value iron and steel products, this will further increase employment and wealth creation in the country. Our Environmental social and corporate governance (ESG) principles are anchored in producing lower-carbon products.'

Commenting on TT Iron's acquisition of the steel plant, liquidator Kelshall said he was thrilled to see this asset being acquired by a company focusing on the development of T&T, especially with the future use of green hydrogen. 'The investment by experienced industry veterans will see T&T continue to be a credible player in the global steel industry', he said.

Kelshall added this investment represents a significant step to continue to diversify the downstream energy industry.

The plant is one of the largest steel mills in the Americas pairing low-carbon emission, natural gas-based Direct Reduced Iron (DRI) technology with Electric Arc Furnaces for steel-making. Originally constructed in 1980, the plant deployed cutting-edge technology at the time which was renewed by continuous investment over the years.

'I nearly got a heart attack' Meanwhile, president of the Steel Workers Union (SWUTT), Timothy Bailey, who represented the terminated employees, told the Express yesterday that the liquidator and TT Iron Steel Company have left the union in the dark about the sale and purchase agreement.

'I found out about this development yesterday, just like the media and I was shocked to see this. To be honest, I nearly got a heart attack. I spoke to the liquidator earlier this year and all he was told at the time is that there was a preferred bidder then,' Bailey said.

He said questions need to be answered such as if the liquidator has been paid any monies by TT Iron Steel Company and has any downpayment been made.

'There are many questions to be answered, but I do not want to say much more as I do not want the two companies to say I am blocking the process. The truth is I want to see the plant up and running again, but members after being terminated with no separation benefits, I can't afford for the workers to be heartbroken again, hence why we should not be left in the dark,' the SWUTT head added.

SIGNING: Gus Hiller, second from left, exchanges greetings with Christopher Kelshall, the liquidator of ArcelorMittal Point Lisas Ltd, following the signing of the sale and purchase agreement for the plant. Flanking them, from left, are Joel Pemberton, Christopher MacIntyre, Odette Clarke, Ramesh Gangabissoon, Ashmead Ali and Keith Daniel.