(MENAFN- AFP)Liberty House, the industrial arm of businessman Sanjeev Gupta's GFG Alliance, said Wednesday it had offered buy Europe's biggest aluminium smelter from Anglo-Australian mining giant Rio Tinto.
Calling the projected $2 billion investment in the Dunkerque, France, based smelter "the start of a major expansion into continental Europe", GFG said Liberty "wants to capitalise on the growing market for aluminium components among Europe’s vehicle manufacturers".
"It is estimated that the total aluminium content in European-made vehicles will rise from 3.3 million to 4.3 million tonnes a year by 2024 and that the global use of aluminium auto body sheet will more than double in the next 10 years," it said, because of a trend towards lighter-weight vehicles with a lower carbon footprint.
"We want to develop the plant into an international centre of aluminium and downstream aluminium products expertise," Gupta said in the statement.
In a nod to economic policies pursued by French President Emmanuel Macron's government, Gupta said: "We are particularly attracted by the pro-business environment that President Macron’s France is quickly building."
Rio Tinto, in a separate statement, said Liberty House's plans included the modernisation of the French site and the offer "represents the best option for the future development of the site while also delivering value for Rio Tinto as we continue to streamline our portfolio".
Rio Tinto in December 2016 had already sold its Lochaber Smelter and assets in Scotland to Liberty House.
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