Liberty Dunaújváros, the Hungarian steelworks owned by Liberty Steel and previously known as Dunaferr, has signed a contract with CISDI Engineering to finalize the feasibility study for the installation of an electric arc furnace (EAF) with a capacity of 1.5 million mt/year.

CISDI, a Chinese company offering engineering, procurement and construction services to the steel industry, will supply the EAF using its patented technologies. This follows a memorandum of understanding signed in September 2023 between Liberty Steel, the Hungarian government, and CISDI to re-equip the met coal-based plant in Dunaújváros with EAF technology.

The contract underpins Liberty Dunaújváros's transformation from a blast furnace-based steelworks to an EAF mill, including the installation of secondary metallurgy units and a hot strip mill upgrade to produce coil products for the automotive sector. Swapping the existing furnaces for an EAF will not affect the mill's capacity but will reduce direct CO2 emissions by 80%.

The project, funded by Chinese banks led by CITIC Bank and backed by China's Export and Credit Insurance Corp. (Sinosure), will be the first EAF in Europe built from Chinese equipment. While Chinese steel companies often import EAF technologies from the EU, this project is expected to leverage China's expertise in steelmaking via the EAF route.

The Dunaújváros reconstruction aligns with Hungary and Serbia being strategic partners for China's Belt and Road Initiative, with the recent talks between President Xi Jinping and Hungarian Prime Minister Viktor Orbán committing to advancing cooperation in clean energy and infrastructure.