Turkey’s Aslanli Metalurji has purchased KVV Liepājas Metalurgs and plans to begin site operations at the former electric steel melting complex by the end of 2021. Aslani purchased the assets for €3mn ($3.6mn), according to media reports, and intends to invest €200mn in the next five years.
Aslani negotiated with FeLM, Latvia state’s public asset manager, for the equipment, building, and land components of the steel mill production complex which will become Liepājas Steel. The Liepājas City government also discussed environmental responsibility concerns, effects, on-site and to the city, from the steel-making process, and employment plans as part of the negotiations.
Guntars Senkāns, board chairman of Liepāja Steel, noted that the company may be operational within six months or prior to the end of 2021, depending on clearance from the Liepāja Special Economic Zone (SEZ). The site has produced rebar and rolled steel in the past.
Liepājas Metalurgs plans to begin operating with 400-450 employees and may grow its workforce up to 1,000 with a forecasted revenue turnover of €500-600mn annually at full operating capacity.
Aslanli Metalurji is part of the Turkish Epas Group, which currently employs 1,100 in Turkey and specializes in wire production.
The KVV Liepājas Metalurgs site was declared insolvent in September 2016 and has been for sale since with various unsuccessful auctions but sold movable some assets to Austria’s Smart Stahl GmbH in March 2018.
($1=€0.83)