Tameh's sole energy supplier is on the brink of bankruptcy due to non-payment of bills by LIBERTY
Czech Industry Minister Józef Sikela has called on Czech steelmaker LIBERTY Ostrava, a subsidiary of British LIBERTY Steel, to pay off energy supplier Tameh. This is reported by Reuters.
The Ostrava steel plant, with an annual capacity of 3.6 million tons of steel, is on the verge of a complete shutdown due to the possibility of bankruptcy of Tameh, the only energy supplier to the plant. The energy supplier is preparing to shut down operations due to non-payment of bills by LIBERTY. Currently, LIBERTY Ostrava is partially idle amid a slowdown in the European steel market.
During a meeting with representatives of the steel plant, the Minister of Industry said that the government is considering various options to resolve the issue.
«The decisive factor will be a clear commitment from the steel company to return the funds to the energy supplier during January and the following months,» he added.
LIBERTY Ostrava, in turn, is seeking to resolve issues with creditors and align them with market conditions. In particular, the company has unveiled a production optimization plan that envisages the launch of blast furnace No. 3 in January. In addition, the company will focus on producing the most popular products and importing some raw materials.
The steelmaker remains solvent and continues to pay its employees and serve its customers.
«We believe that this plan, which was developed after a comprehensive review of our operations and markets, is the best way to achieve a sustainable future for the business, its employees, creditors and local communities,» LIBERTY European President, LIBERTY Ostrava Chairman Ajay Aggarwal, said.
At the same time, according to media reports, Tameh will suspend energy supplies starting December 21, which will completely halt Liberty Ostrava’s production.
As GMK Center reported earlier, Liberty Ostrava shut down its only operating blast furnace No. 3 on October 23, 2023. The unit’s downtime was scheduled for two weeks. During this period, full employment was planned to be maintained, and customer orders will continue to be fulfilled as the relevant rolling mills remain in operation.
In addition, in early October 2023, Liberty Ostrava began the process of shutting down one of the three coke oven batteries at VKB No. 11. The company sees this event as an important step towards the transition to environmentally friendly steel production. The unit was inefficient and was becoming increasingly unprofitable due to overcapacity in the market.
LIBERTY Ostrava is an integrated steel plant with an annual production capacity of about 3.6 million tons. The company primarily serves the construction, engineering and oil and gas industries. The company is a leader in the production of road barriers and pipes on the Czech market. In addition to the domestic market, it supplies its products to more than 40 countries around the world.