China’s CISDI Engineering has signed a memorandum of understanding with China Export and Credit Insurance Corporation (Sinosure) on underwriting 1.3 billion euros in financing for two 150-ton capacity electric arc furnaces it is supplying to Indian-owned Liberty Dunaujvaros, Liberty Steel Group reports.

CISDI representatives announced the MoU during a visit to Liberty Dunaujvaros’s steelworks in central Hungary. The CISDI officials also consulted with experts from Switzerland’s NPT and Germany’s RCG on optimising systems at the base and building ancillary support for electricity, gas, water and steam. The 1.3 billion euros of investments, which include upgrades of the hot-rolled mill and galvanising line and the installation of new production lines, will turn the steelworks into a supplier for the local defence and automotive industries.

Liberty Steel Europe CEO Thomas Gangl said the project was advancing “on schedule”.

CISDI chairman Xiao Peng said the MoU with Sinosure was a “significant step” in reducing the CO2 emissions of the 3-million ton capacity mill.