A steel metaling industry company is in the process of raising a record $20 million in new funding.
The company, Steel Metaling Infrastructure, has been looking for a partner since last year when it began to sell its product.
The investment comes as steel prices continue to fall and is the latest in a series of private equity funds that have sought to buy steel plants, including a $2.5 billion investment from Chinese-listed Shanghai-based Anbang Insurance Group last year.
Steel is being increasingly squeezed by cheaper, tougher technology and a global glut of ore.
In a statement, Steel said it was “very pleased” to be able to announce its investment.
“We’re thrilled to be working with an established investor with a long history of successful and sustainable business growth,” said co-founder and CEO Simon Dickson.
The $20m in capital comes as the company aims to double its production capacity to 30 million tonnes a year by the end of 2019.
Its latest acquisition, Steel Mill, is also a project that has been under construction for several years.
The announcement comes amid a sharp drop in prices, with the Australian dollar falling to a five-year low of 78 US cents against the dollar on Wednesday.
The drop in the dollar has been a boon for steel producers, as it means cheaper steel costs for consumers and manufacturers, as well as reducing steel tariffs.
Dickson said the company would not be seeking a share in the new investment but hoped to partner with other investors to further expand its operations.
“Our business model is to grow the business, and we have invested in other companies to help us grow,” he said.