Liberty Galati Steel Mill Enters Pre-Insolvency to Secure Future
Romania's Liberty Galati steel mill, with an annual liquid steel capacity of 3 million tonnes, has initiated a pre-insolvency procedure. The move aims to stabilise the business, optimise resource allocation, and open new investment opportunities.
The mill's struggles can be attributed to several factors. Geopolitical changes, US tariffs on steel imports, and the lack of EU protection measures for the steel industry have all played a role. Additionally, the mill is facing insolvency requests from suppliers, delayed salaries, and a nine-month shutdown of its only blast furnace.
The European steel sector shares these concerns, with US tariffs on EU steel exports redirecting global steel imports to open markets. Liberty Galati's management expects a rescue from a bank loan under discussion with state-owned Exim - Banca Romaneasca. The Romanian state has appointed Dan Sandu, general director of the Investment and Development Bank, to Liberty Galati's Board of Directors. The bank in question for rescuing the Liberty Galati steel plant is Banca Transilvania, with funds expected by the end of the year to resume operations.
The European Commission has promised a plan to protect the local steel industry, to be unveiled on March 19 by Commission vice-president Stéphane Séjourné. Liberty Galati's pre-insolvency procedure aims to navigate these challenges and secure the mill's future.
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