Sanjeev Gupta signs $320m deal in push to increase US steel production

Industrialist Sanjeev Gupta has agreed to buy US steel wire producer Keystone Consolidated Industries in a deal valued at $320m (£251m).

The deal will take Gupta’s GFG Alliance steelmaking capacity to around 1.8m tonnes a year, as it adds to its US steelworks in Georgetown.

The acquisition was financed by a loan from two American banks and asset management Blackrock, as GFG contributes equity and its Georgetown plant to the transaction.

Gupta has established himself as a growing commodities player by hoovering up under-pressure steel, aluminium and energy assets and owns Liberty House and Simec.

Two months ago it carved out a part of steelmaker Arcelormittal, giving it plants in the Czech Republic, Romania, Macedonia and Italy.

The deal brought its international production to 15m tonnes.

“As we look ahead to the future, GFG will benefit from Keystone’s century-long history, its robust operations, and its reputation for producing top quality steel,” Gupta said.

“With Liberty Steel Georgetown, KCI will increase our downstream capabilities, create critical synergies, add strong management and provide better value and products for customers as we advance our US steel business to our 5m tonnes per year goal,” he said.