The company is likely to idle two blast furnaces at the Czech and Romanian plants in the near future
Liberty Steel is shutting down one of three coke ovens at its steel mill in Ostrava, Czech Republic. Argus.Media reports about it.
The company announced the shutdown of one of the largest coke ovens at the Czech plant – №11. The reason for the shutdown is the unit’s inefficiency and unprofitability, as well as excess capacity on the market.
«The government has not yet succeeded in reducing the impact of high energy prices and rising inflation in Europe on our enterprises, so we had to take decisive measures in the interests of business,» the company representative said.
In addition, the company is likely to idle two blast furnaces at the Czech and Romanian plants in the near future. Both units are currently operational, but the market suggests that the company’s management plans to suspend them amid the strained financial situation.
As GMK Center reported earlier, before Liberty Steel stopped production at the Hungarian steel plant Dunaferr for three months. The reason for the shutdown is low steel prices and a general unfavorable market situation. The work of the coke chemical division is reduced to a minimum.
Liberty won the tender for the acquisition of Hungarian Dunaferr in mid-July 2023, offering €55 million for the company.
Also, steel companies of the European Union in January-July 2023, reduced steel production by 10.3% compared to the same period in 2022 – to 76.7 million tons. In July, the indicator decreased by 7.1% y/y – up to 10.3 million tons.
LIBERTY Ostrava is an integrated steel plant with an annual production capacity of approximately 3.6 million tons. The enterprise mainly serves the construction, engineering and oil and gas industries. The company is a leader in the production of road fences and pipes on the Czech market. In addition to the domestic market, it supplies its products to more than 40 countries around the world.