UK-based company Liberty Steel has acquired French railway track manufacturer Hayange, which was previously a part of the British Steel group.
The financial details of the acquisition were not disclosed.
The acquisition comes after the French Government blocked Hayange’s acquisition by China’s Jingye Group, reported Reuters.
The Jingye Group previously purchased British Steel’s assets in the UK and the Netherlands.
Hayange annually produces around 300,000t of rail tracks, most of which are supplied to French railway company SNCF.
Concurrently, Liberty Steel has also acquired French steel making plant Ascoval. Previously owned by Greybull Capital, the company is now expected to supply raw materials to Hayange.
Liberty Steel also plans to invest €65m to strengthen the two businesses.
Owned by the GFG Alliance, Liberty Steel operates as a steel manufacturer and distributor.
GFG Alliance chairman Sanjeev Gupta said: “We intend to develop Ascoval as a GREENSTEEL hub and to drive Hayange into new markets through strong engagement with European rail operators seeking to make their networks carbon neutral.”
Notably, British Steel entered compulsory liquidation last May after its owner Greybull Capital failed to procure necessary funding to support its operations.
Last year, Systra acquired multidisciplinary engineering firm TSP Projects, a subsidiary of British Steel.