Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
International Steel Group to Buy HBI Facility
RICHFIELD, Ohio -- International Steel Group Inc. has signed an agreement to purchase substantially all of the assets, and assume certain of the liabilities, of the Cliffs and Associates Limited Hot Briquetted Iron (HBI) facility located in Trinidad and Tobago. HBI is a high-quality scrap substitute that can be used as an iron source in steelmaking operations.The terms of the transaction were not disclosed. The transaction is subject to customary closing conditions and is expected to close by the end of the second quarter.The facility has the capacity to produce approximately 500,000 metric tons of HBI annually. The HBI process uses natural gas to reduce iron ore fines and yields a low-cost scrap steel substitute that can be used in both electric arc furnace and traditional blast furnace steelmaking. HBI can also be used to increase the efficiency of blast furnaces and thereby reduce the use of coke."Given continuing strong global demand for steel and the rising prices of raw materials, the HBI technology offers an economically attractive option to other raw materials," says Rodney B. Mott, ISG's president and chief executive officer. "The Trinidad and Tobago facility is strategically located near natural gas reserves. This provides an inexpensive source of energy for the production of HBI."ISG expects to begin HBI production within approximately 90 days once the purchase is complete, Mott adds.The Trinidad and Tobago HBI project began in the mid-1990s as a joint venture between Cleveland Cliffs, Lurgi Metallurgie (now known as Outokumpu Technology GmbH) and LTV Steel. Production began in 2000 but ceased a year later as a result of depressed global scrap iron and HBI prices, changes in the makeup of the joint venture, and other factors.Early last month, ISG received permission from U.S. Bankruptcy Court to purchase the assets of Weirton Steel (read story).International Steel Group Inc. is the second largest integrated steel producer in North America, based on steelmaking capacity. The Company has the capacity to cast more than 18 million tons of steel products annually."