The company is adapting to the difficult conditions for European steel producers
Romanian steel mill Liberty Galati, which is part of Sajiv Gupta’s GFG Alliance group of companies, has started the process of restarting blast furnace (BFU) №5, which was suspended in mid-October 2023. This is stated in press release.
«The process of restarting Blast Furnace №5 is currently underway and is expected to be completed within the next few days,» the company said.
The restart of the blast furnace takes place amid difficult market conditions for European steel producers. Liberty Galati is adapting to market conditions by adjusting product range and work schedules, as well as reducing the cost base in cooperation with the government to overcome the energy price gap observed in Europe.
These factors, combined with ongoing support and cooperation with customers, suppliers and stakeholders, will help the plant ensure the restart of BF №5 and maintain competitiveness in the context of the transition of European industry to green technologies.
«The restart is good news for the plant, but we must continue to focus on every part of the production costs to maintain the momentum and ensure that we serve our customers with high-quality and competitive products,» comments Prasanta Mishkra, managing director of Liberty Galati.
The plant will focus on semi-finished products, which will improve cash flow and accounts payable over the next few months, he said.
“We continue to work with the government on solutions to address the energy cost gap, which now accounts for almost 40% of variable costs per tonne of steel produced, compared to just 8% in 2019. We are grateful for the support of our partners in overcoming these difficult market conditions,» sums up the CEO of Liberty Galati.
As GMK Center reported earlier, on October 17, 2023, it became known that Liberty Steel suspended the only operating blast furnace at the Liberty Galati Romanian plant. The main reasons for the stop at that time were harsh weather conditions in the Black Sea and a sharp drop in the water level in the Danube. This affected the supply of a sufficient amount of raw materials for the safe operation of the unit. Sources speculated that the relaunch will take place on October 24.
Aso, at the end of 2022, Liberty Galati stopped blast furnace №5 for maintenance. Investments in unit renewal amounted to 18.3 million lei (almost €4 million). In March 2023, the steel plant announced the restart of the blast furnace.