Liberty Galați is preparing for a relaunch following a failed attempt to sell the company

The Romanian steel mill Liberty Galați has begun preparations to resume operations after nearly seven months of downtime, which followed a failed attempt to sell the asset. According to local media and industry sources, the sale fell through because the asset was deemed overvalued, and no potential buyers could be found.

Against this backdrop, the Romanian government approved a list of strategically important operators under the Ministry of Economy at an extraordinary meeting, granting the company access to state support. The list includes Liberty Galați, Liberty Tubular Products Galați, Romaero, and Damen Shipyards Mangalia. The decision allows funds from the Guarantee Fund to be used to pay outstanding wages to employees.

The total funding amounts to 257.7 million lei. Of this, 168 million lei is earmarked for companies undergoing preventive composition proceedings—Liberty Galați and Liberty Tubular Products Galați—covering 2,949 employees for a period of up to six months. According to the authorities, Liberty Galați alone employs 2,787 people, and another 6,000 to 12,000 jobs depend on the plant’s operations.

Romania’s Minister of Economy stated that the goal of the decision is not only to pay off wage arrears for over 4,500 employees but also to preserve strategic industrial capacity and the associated production chains. According to government estimates, the permanent closure of Liberty Galați could increase the local unemployment rate by approximately 1.8 percentage points.

According to SteelOrbis, the resumption of operations at the mill, if it occurs, will be gradual. Initially, activity may focus on rolling mills, primarily under tolling arrangements. At the same time, the market remains cautious, as against the backdrop of previous disruptions, debts, and payment delays, the plant’s ability to quickly regain customer trust and attract new orders remains in question.

As a reminder, Remus Borsa, president of Euro Insol, previously told DigiEconomic: if the sale does not take place this year, it may not happen at all, as the company is losing market share, customers, and working capital. According to him, when Liberty Galați is idle, costs amount to €14 million per month; when production is underway, they reach €98 million per month. The steel mill is a major consumer of financial resources, raw materials, and other inputs.