Liberty Steel Group, which acquired Dunaferr in July 2023, has formed a partnership with China's CISDI Engineering and the Hungarian Ministry of Economic Development to prepare for the decarbonisation of the troubled Dunaferr plants.
The parties signed a Memorandum of Understanding setting out the terms of cooperation in the presence of senior executives from all three countries in Budapest on 20 September.
Under the plan, the Dunaferr steel mill will switch from a coal-intensive steelmaking process to electric arc furnace (EAF) technology. The company will replace its existing blast furnaces and basic oxygen furnace with a new 150 tonne EAF to be supplied by CISDI. This will allow the Dunaferr plant to reduce carbon dioxide emissions by up to 80 per cent, the company said.
According to market sources, the Dunaferr steel mill is currently idled, both BFs are offline and rolling mills were shut down in August due to a lack of raw materials.