Luxembourg offers €14.5 million for Liberty Steel Dudelange plant

The Luxembourg government has disclosed the cost of the offer to the liquidator – €14.5 million – for the nationalization of the Liberty Steel plant in Dudelange. This was reported by the Luxembourg Times.

In response to a parliamentary question, Minister of Economy Lex Delles, Minister of Defense Yuriko Bakkes, and Minister of Labor Marc Spautz stated that the offer is subject to several conditions. These include maintaining all relevant assets in good condition until the transfer of ownership agreement is signed and guaranteeing access to any documents relating to buildings and structures upon first request.

In addition, there is a requirement for full payment to all priority creditors, in particular the settlement of claims relating to wages and the balance payable to the employment agency ADEM.

One of the sites of the former metallurgical plant is planned to be used for “economic activities in the defense sector, including the creation of a defense campus,” while the other will be used as a place for craft activities.

According to L’essentiel, both sites will eventually house companies that will rent part of the premises, and the government will set up a technical and administrative building management service. At the same time, the Defense Campus projects and support provided to companies will be handled by the Directorate of Defense and the Ministry of Economy.

The ministers clarified that former Liberty Steel employees will not have priority access to new jobs. However, the approximately 140 remaining employees may receive support from ADEM to help them find new jobs. The schedule for the reconstruction of the facility has not yet been set, but government officials have assured full transparency throughout the process.

Liberty Steel acquired the Dudelange site along with several other European steel assets from ArcelorMittal in 2019. Almost all of them have faced insolvency or closure in recent years. In December 2024, the company was declared insolvent and an administrator was appointed.

As a reminder, the Luxembourg government officially offered to acquire the insolvent Liberty Steel plant in Dudelange in July this year.