By Prior Beharry
THE iron and steel company that was closed down about seven years ago has a buyer.
TT Iron Steel Company Limited (TTIS) has signed a sale and purchase agreement with the liquidator of ArcelorMittal Point Lisas Ltd (In Liquidation) Christopher Kelshall to acquire the iron and steel plant in the Point Lisas Industrial Estate, Couva, Trinidad.
A release from TTIS on Wednesday stated that the sale was subject to government approval.
It stated, “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 steelmaking. Originally constructed in 1980, the plant deployed cutting edge technology at the time which was renewed by continuous investment over the years.
“Initial refurbishment and restart of the plant is expected to cost US$150-200 million (TT$1-1.4 billion) over the next 24 months with further investment required thereafter.
“Currently, 70 percent of the world’s steel is made using traditional coal-based blast furnaces that emit 2.0 to 2.5 tonnes of CO2 per tonne of steel produced. The remaining 30 percent is made using electric arc furnace technology (0.8 to 1.5 tonnes of CO2 per tonne), primarily fed by recycled/scrap steel and/or low carbon emission Direct Reduced Iron, as at Point Lisas. Direct Reduced Iron is produced from iron ore smelted with natural gas and/or hydrogen which has lower carbon emissions than coal-based technologies.”
The release stated that the plant historically used natural gas but TTIS intends to transition to green hydrogen in the coming years as it becomes commercially available.
But AZP News was told by sources close to the transaction that initially the plant will start off with natural gas and TTIS had signed off on a term sheet agreement with the National Gas Company for nine million standard cubic feet of natural gas per day (mmscf/d) which would increase to 55 mmscf/d by 2025/2026 when it is expected to have full operations.
The TTIS release stated that more than 1,000 jobs will be created during the refurbishment and start-up phase 500 workers when fully operational.
Founder, President, and Chief Executive Officer of TTIS Gus Hiller is a veteran of the steel industry and no stranger to the Trinidad and Tobago, the release stated.
It noted that he spent six years of his career on the Point Lisas estate at the helm of Nucor and has managed and operated steel plants across United States of America and Canada.
Hiller said: “We believe there is great potential for the plant to return to the forefront of global steelmaking technology and performance. Our team was drawn to Trinidad and Tobago 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.
“The restart of this plant will create a long-term sustainable industry that generates secure employment and wealth for the citizens of Trinidad & Tobago for generations to come.”
Chairman of TT Iron Joel “Monty” Pemberton said: “The restart of the local steel industry continues the vision of the Trinbagonian pioneers who conceived it, and we are enhancing this vision with the full use of green hydrogen in the shortest possible time frame; this is the fuel of the future.”
This arcelor mittal deal has a stench as the PATRIOTIC DEAL. Announce just be an election that never materializes. Promise never Materializes…PNM