Chinese technology firm CISDI, which provides engineering and construction services to the steel industry, contributed to the realization of this project. CISDI secured preliminary financial support for the project from the China Export and Credit Insurance Corporation (Sinosure). This financial support is said to facilitate the completion of the investment process for the project.
In September 2023, Liberty and CISDI signed a memorandum of understanding with the Hungarian government on the adoption of electric arc furnace technology. This was followed in May by an agreement finalizing the feasibility study for the project. As a result of this agreement, Sinosure will underwrite a EUR 1.3 billion investment to finance two EAFs at Liberty Dunaujvaros, each with a capacity of 1.5 million tons/year.
The new electric arc furnaces replace existing coal-based production methods. With this change, the environmental impact of the plant will be reduced by 80% CO2 emissions compared to blast furnace-based production units. In addition, scrap and direct-reduced iron sheets will be converted into hot-rolled coils, making the production process more sustainable.
In June, Liberty shut down coke production at its Dunaujvaros plant, shutting down two coke oven batteries due to oversupply. Currently, only rolling operations continue at the steel mill. The new investment package includes upgrades to existing hot rolling and galvanizing lines and the installation of new production lines for the defense and automotive sectors.
Xiao Peng, President of CISDI, noted that the plant will include the latest electric arc furnaces, ladle furnaces, vacuum degassing systems and artificial intelligence control systems. He emphasized that this combination of technologies will take productivity to a level unmatched worldwide.
Sinosure representative He Zhigang said that the cooperation between Liberty and CISDI strengthens relations between China and Hungary and demonstrates the significant benefits of investing in sustainable steelmaking technologies.
This transformation represents a major step towards Liberty Steel's goals of improving environmental sustainability and expanding production capacity.
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