TT Iron Steel Company (TTIS) reported that ArcelorMittal has agreed to purchase the Point Lisas iron and steel plant, which has stopped production in the country due to low global steel costs.
The purchase agreement comes seven years after ArcelorMittal closed its Trinidad operations. Previous sales negotiations with other potential buyers could not be completed.
Built in 1980, the facility will undergo an initial renovation, which is expected to cost between $150 and $200 million. TTIS said the plant will be operational again in about 24 months, after which further investment will be required.
While about 70% of the world's steel is made using conventional high-emission coal-based furnaces, factories including Point Lisas use electric arc furnaces primarily powered by a combination of recycled steel and iron ore and direct reduced iron produced from natural gas or hydrogen.
The company said the plant has historically used gas, but TTIS plans to switch to green hydrogen as it becomes commercially available in the coming years.