PORT OF SPAIN, Trinidad, CMC – The Trinidad and Tobago Iron Steel Company Ltd (TT Iron) Wednesday said it had signed a sales and purchase agreement with the liquidator of ArcelorMittal Point Lisas Ltd, Christopher Kelshall, to acquire the iron and steel plant in the Point Lisas Industrial Estate, Couva in central Trinidad.
It said completion of the transaction is subject to approval by the Trinidad and Tobago government.
“I am thrilled to see this asset being acquired by a company focussed on the development of Trinidad and Tobago, especially with the future use of green hydrogen,” Kelshall said.
“The investment by experienced industry veterans will see Trinidad and Tobago continue to be a credible player in the global steel industry. Further, this investment represents a significant step to continue diversifying the downstream energy industry in Trinidad and Tobago,” he added.
The country’s largest non-energy, manufacturing exporter was shuttered in March 2016, beginning liquidation proceedings soon after to pay off its reported TT$1.3 billion (One TT dollar=US$0.16 cents) debt, most of which was owed to its parent, the Luxemburg-based ArcelorMittal group.
Media reports said then that the decision resulted in at least 644 workers going on the breadline and causing the National Gas Company, WASA, PLIPDECO, and Trinidad and Tobago Electricity Company (T&TEC) to forego hundreds of millions in fees and tariffs and leading to almost US$800 million in estimated export earnings lost over three years,
“Initial refurbishment and restart of the plant are expected to cost US$150-200 million over the next 24 months with the further investment required after that,” TT Iron said, adding that more than 1,000 jobs will be created during the refurbishment and start-up phase and, when fully operational, the plant will create long term employment for 500 skilled workers.
“TT Iron believes that restart of the plant will indirectly create many more jobs – for instance, through maintenance and construction services, port services, downstream manufacturing demand for green hydrogen and renewable energy, etc.”
TT Iron founder and group chief executive officer Gus Hiller, who has managed and operated steel plants across the United States and Canada, 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 can 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.”
Hiller said that the restart of this plant would create a long-term sustainable industry that generates secure employment and wealth for the citizens of Trinidad & Tobago for generations to come.
TT Iron chairman 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.
“TT Iron is passionate about developing the downstream manufacturing sector of higher value iron and steel products in Trinidad and Tobago; this will further increase employment and wealth creation in the country.
“Our ESG principles are anchored in producing lower carbon products, the promotion of entrepreneurial activity in Trinidad and Tobago through the development of the downstream manufacturing sector, establishing an apprenticeship program for youth development, thereby creating sustainable employment for generations in the clean energy industry.”
In a statement, TT Iron said that the plant is one of the Western Hemisphere’s largest steel mills pairing low carbon emission, natural gas-based Direct Reduced Iron (DRI) technology with Electric Arc Furnaces for steelmaking.
Initially constructed in 1980, the plant deployed cutting-edge technology, which was renewed by continuous investment.
TT Iron said that 70 percent of the world’s steel is currently 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 low carbon emission Direct Reduced Iron, as at Point Lisas.”
It said Direct Reduced Iron is produced from iron ore smelted with natural gas and hydrogen, which has lower carbon emissions than coal-based technologies.
“The plant historically used natural gas; however, TT Iron intends to transition to green hydrogen in the coming years as it becomes commercially available. This will reduce the plant’s carbon intensity to 0.4 tonnes of CO2 per tonne of steel produced.
“Restarting the iron and steel plant and then transitioning to green hydrogen will put Trinidad and Tobago back on the map as a world leader on the cutting edge of low emission steel production technology.”
and then  Wednesday said it had signed a sales and purchase agreement){kind=link}