The contract is essential for LIBERTY Dunaújváros's green steel transformation, which includes the installation of a modern EAF as well as the secondary metallurgy and hot strip mill upgrade required to allow the business to deliver high value products for the automotive sector in Hungary.

The work will involve Hungarian, European, Chinese and LIBERTY experts. It will define detailed requirements for the EAF, and its interface with the systems in the plant's existing production lines, the supply of raw materials and the expected environmental impact. It will also lead to the selection of the construction partners as well as any matters which fall outside the main OEM contract. The feasibility study follows a comprehensive technical scoping and engineering study, conducted by the Swiss-based leading engineering service providers NPT.

The new EAF is expected to have a capacity of over 1.5 million tonnes per annum and will be supplied by CISDI using their patented technologies. The state-of-the-art furnace carries the latest in energy efficient measures and allows for flexibility in charging raw materials.

The new furnace will significantly enhance the competitiveness of the Dunaújváros operation and reduce direct CO2 emissions by 80%, providing cleaner air quality for residents in Dunaújváros and the surrounding area.

The project has the support of the Hungarian and Chinese governments and will be funded by Chinese banks led by CITIC Bank and backed by China's Export and Credit Insurance Corporation, Sinosure.

Gergely Fabian, Hungary's State Secretary for Industrial Policy and Technology, commented: “I'm impressed with the speed at which LIBERTY and CISDI have developed this project after we signed the MOU with them back in September last year. This is a project of national significance - Hungary will be the first green steel producer in Europe serving our growing automotive market and other sectors. It is critical that the supply chain for Electric Vehicles made in Hungary becomes green as soon as possible.”

XIAO Peng, Chairman from CISDI engineering, said: “CISDI has a long standing relationship with LIBERTY stretching back a decade. We are working hard to deliver this ground breaking project using our patented green steel technologies at record speed. This project will be an example of cooperation and success between the members of this consortium.”

Sanjeev Gupta, Executive Chairman, LIBERTY Steel Group said: “We're very pleased to be working with CISDI on this important stage of our decarbonisation project in LIBERTY Dunaújváros. This modern Electric Arc Furnace will deliver huge environmental and competitive benefits to Dunaújváros, cutting CO2 emissions by 80% and boosting productivity. This will be one of the first green steel transformations in Europe, and I would like to thank Hungary and Chinese governments for their support and cooperation in helping to deliver this important project at this speed.”

Mr HE Zhigang, Sinosure Shanxi said: “During his state visit to Hungary on May 8, President Xi declared that China will promote Belt&Road Initiatives with Hungary and further align with the Hungary's "Eastern Opening" policy. Sinosure will actively implement President Xi's initiative and make use of its successful experience in supporting global green, low-carbon and circular economic development to provide financial support for enhanced cooperation between the two countries. LIBERTY's Dunaújváros green steel plant in Hungary is one of the green development projects that President Xi has pointed out. Sinosure Shanxi is willing to provide financial support for the project, hoping that all parties involved in the project will make efforts to build the Dunaújváros project as a demonstration project to mark the China-Hungary cooperation.”

Mr SHAN Zhenlei General Manager China CITIC Bank Shanghai said: “It's an honour to work with LIBERTY, CISDI, and Sinosure, to finance a project of such great significance for the China Hungary bilateral relationship, and also for the decarbonisation of the steel industry which accounts for almost 10% of global emissions.”