Former ArcelorMittal steel mill gets new owner

Aeternus Steel Holdings Ltd, a joint venture between local company Integrus Group and Dubai investors Cassia Group, has won the bid for the now-shuttered ArcelorMittal steel mill in Point Lisas.

The winner was announced today.

The plant was shuttered in March 2016, beginning liquidation proceedings soon after to pay off its reported $1.3 billion debt – most of which was owed to its parent, the ArcelorMittal group, which is headquartered in Luxembourg.

Speaking to Newsday, liquidator Christopher Kelshall confirmed the name of the winning bidder and said the process has now “moved through to the next stages.” “The intention is to restart in phases but (Aeternus) is interested in recommissioning the plant. It will be done over time,” Kelshall told Newsday in a phone call. He said he was still bound by confidentiality agreements, so could not much, including the value of the bid.

This is the second bid round for the plant. The first was in September 2017, but after months of waiting for approvals from relevant government authorities, the preferred bidder, Nu-Iron, a subsidiary of American steel giant Nucor, pulled out of the process. The new bid round began in January and ended in March.

Losing out was Macarri Steel Holdings Ltd, a consortium made up of local and international investors, including former steelworkers, who had petitioned to be allowed to bid and restart the plant. Speaking to Newsday this afternoon, director Unanan Persad confirmed the company’s bid – estimated to be US$27 million – was unsuccessful.

Newsday also spoke with Jai Leladharsingh, manager of the Couva-Point Lisas Chamber of Commerce, who said the organisation was not aware of who won the bid but welcomed any attempt to restart the mill. “We would be happy if the plant (restarted), earning foreign exchange for the country and hiring the former steelworkers. It would also stimulate economic activity in the Couva/California region.”