News Companies Liberty Galati 1667 20 February 2025
The only flat-rolled steel producer in the country follows the fate of other Liberty Steel assets in Europe
Romanian steelmaker Liberty Galati is in a crisis situation due to protracted financial problems. Eight months have passed since the last blast furnace was shut down, but the company’s management has not yet explained the prospects for its recovery, SteelOrbis reports.
According to the market, the plant is delaying salary payments, its debts are growing, and commercial disputes are multiplying. Sources say that despite maintaining staff and monthly payments to employees, business activity has effectively stopped, and discontent among employees is growing. In addition, more than 50 companies have filed lawsuits against Liberty Galati demanding the return of the money owed.
Amid these events, market participants fear a possible bankruptcy of the company, similar to the situation with Liberty Ostrava in the Czech Republic, which the company acquired in 2019. However, even if Liberty Galati receives financial assistance to launch a blast furnace, the feasibility of resuming operations in the current European market remains questionable.
As a reminder, in early February 2025, the insolvency officer of the Czech Liberty Ostrava, with the approval of the creditors’ committee, began the process of selling the bankrupt steel plant. The deadline for submitting mandatory bids is April 23.
The company is also having problems with the Hungarian government over the downtime of its recently acquired plant in Dunaujvaros. At the end of 2024, the Hungarian government warned that Liberty’s Dunaújváros unit could face bankruptcy and liquidation if the problems with salary payments and production resumption are not resolved soon.
