Chinese Loan to Finance Long-awaited Modernization of Dunajvros Steel Factory [Video]

The first positive news in months comes from Liberty Steel, buying the assets of Dunaferr, a major player in Hungarian heavy industry and the region’s largest employer. Thanks to an agreement in principle, it looks like that Liberty Steel will be able to finance the long-awaited modernization of the ironworks with a Chinese gigabank loan.

China Export & Credit Insurance Corporation (Sinosure) have reached an agreement in principle to guarantee a loan of EUR 1.3 billion, the British-Indian company that owns the Dunaújváros (central Hungary) ironworks told Világgazdaság.

The agreement in principle will facilitate the acquisition of additional grants and guarantees to finalize the capital structure of the investment.

With the commissioning of the new facility, the increasingly obsolete coal-based steel production methods will be replaced by the latest sustainable steel production technology. It is promised that the two new 150 ton capacity electric arc furnaces (EAFs), together with the upgraded secondary metallurgical plant, will be able to recycle steel scrap and directly …