[ferro-alloys.com]Industrial group GFG Alliance, the parent of expanding steel and metals group Liberty House, is looking at setting up operations in India and China, at the same time as consolidating its portfolio of businesses in the UK, US and Australia, the group's Chief Investment Officer Jay Hambro told S&P Platts in an interview this week.

The geographical radar screen of the group, which recently reported an annual $16 billion turnover, is "active for the whole of Asia, where we have good relations with corporates: we have a watching brief all over the place," Hambro said, adding that the group is primarily focused on opportunities in developing countries.

The group is "incredibly excited" about India, where GFG is "actively considering" starting activities, looking at several possibilities in the area of value-added steel production, aluminum and energy, the CIO said.

Hambro said the group is attracted by India's strong growth rate, with steel demand forecast by the World Steel Association to grow by more than 7% in both 2019 and 2020. India's steel consumption is set to surpass the US's this year, making it the world's second largest consumer after China. Annual consumption of 97.5 million mt of products in the 2018-2019 fiscal year as recorded by India's Joint Plant Committee, is forecast to reach 230 million mt by 2030-31.

In China, GFG already has trading and logistics offices in Shanghai and Hong Kong, distributing steel and iron ore from the group's Australian operations, and the company could consider setting up manufacturing operations at some point, Hambro said.

The group's philosophy is to achieve "decoupled integration", owning, operating and managing as many elements as possible in the global steel and metals supply chain, he said.

In Australia, the group has a strong growth pipeline and an IPO of the group's steel operations is still a possibility, the CIO said. "We are confident that should we come to the equity markets there would be support for it," he said.

In the US, meanwhile, where GFG restarted the Georgetown electric arc furnace-based plant and is positioned to become the largest wire rod producer in the US, an IPO is "under active consideration."GFG also sees future expansion possibilities in Europe, where final closure is expected imminently for the group's acquisition of several ArcelorMittal plants, including two integrated steel mills, following the European Commission's recent approval. The group is eyeing new opportunities that could emerge with the flop of ThyssenKrupp-Tata steel merger plans.

"Should it be that Tata should wish to sell Port Talbot [works in the UK] we would be interested," Hambro said.

(S&P Global Platts)

• [Editor:王可]