LIBERTY restarts part of the rolling capacity of Hungarian Dunaferr

LIBERTY Steel has announced the restart of part of its rolling capacity at the recently acquired Hungarian steel plant Dunaferr (LIBERTY Dunaújváros). It is reported by Portfolio.hu.

As part of its production program for 2024, Dunaferr has resumed operation of rolling mills and a galvanizing line that produces galvanized steel. This strategic step marks the first part of a 100-day restructuring plan aimed at optimizing operational efficiency in line with the expected market recovery.

«We are very pleased that Dunaferr’s rolling mills have been restored so that we can continue to supply high quality steel products to our customers in Hungary and Europe. This is the first step in the company’s revitalization, which benefits not only the employees but also the entire community of Dunaujvaros», Ajay Aggarwal, European President of LIBERTY Steel Group, comments.

The optimization program includes cutting unjustified operating expenses and reducing the share of outsourced services. In addition, it is planned to restructure the product range in line with market demand.

«During the reorganization process, LIBERTY Dunaújváros will retain its employees and pay wages as usual,» the company emphasizes.

At the same time, retraining courses will be launched in the first half of the year to adapt employees to the operation of the planned modern electric arc furnace.

Earlier, LIBERTY Steel shut down the only operating blast furnace at Dunaferr in Hungary. The company explains this by the unviable production cost, given the low rolled steel prices.

Later, the company announced that it would suspend production at the plant for three months, including steelmaking and rolled products. The coke and chemicals division will be minimized. In September 2023, the company suspended its rolling lines due to a shortage of slabs.

As GMK Center reported, British Liberty won the tender to acquire Hungary’s Dunaferr in mid-July 2023, offering €55 million for the company. At the last stage, it competed with Vulcan Steel, a private company based in Mauritius. “Metinvest” group, which was one of the applicants for the purchase of the plant, stated , that the tender from the beginning did not meet the criteria of transparency, was conducted in a very short time, information for participants was limited. The company also noted that the cost of the plant is about €200 million.