Liberty Steel, led by Sanjiv Gupta and a member of the global GFG alliance, acquired Johnstown Wire Technologies (JWT).
The acquisition expands the company's presence in the US in the market for processed products.
Liberty acquired the company, the largest producer of carbon and value-added alloys, from a private investment company, Aterian Investment Partners, and was financed with its own capital, as well as loans from PNC Business Credit.
From a business point of view, the acquisition gives Liberty the ability to produce a range of high-quality carbon and alloyed wire products for various end-markets, including infrastructure, automotive, utilities, and the consumer sector.
An improved 250 workers' production facility in Johnstown will complement the smelting and rolling operations of Liberty in Georgetown, South Carolina, and Peoria, Illinois. Liberty states that in conjunction with its scrap processing plant in Tampa, Florida, it will firmly integrate the business into the value chain in the US steel market.
The acquisition is viewed by Liberty as an important step towards the rapid emergence of a market leader in the American wire rod sector.
The 638,000-square-foot Johnstown plant has been a high-grade steel plant for over 100 years. The company is one of the three leaders in the United States in the production of those types of steel that will be needed to modernize America’s aging infrastructure - CHQ, galvanized, aluminized, and spring wire. JWT currently ranks first in the galvanized and aluminum markets.
According to Liberty Steel, the plan is to spur JWT growth, as the US is upgrading its infrastructure and power grids, thereby increasing the demand for steel products, such as support cables and fencing for bridges and power lines.
More than half of JWT products are sold in the transportation market. Liberty's goal is to capitalize on the continued growth in US auto production. JWT is the third largest US manufacturer of CHQ wire, which is used in automotive products such as cylinder block bolts and brake pad rivets.
This acquisition will also greatly enhance Liberty’s ability to meet the Made in America specifications required for public infrastructure and utility contracts.
