Steel Mont proposes to resume operations at Romania’s Liberty Galați steel plant

A European consortium led by trading company Steel Mont has submitted a proposal to resume operations and potentially acquire the Romanian Liberty Galați steel plant. According to EUROMETAL, citing company data, the documents were submitted to the plant’s administrators on September 23.

The plan involves the launch of thick-sheet production. Steel Mont emphasizes that the resumption of the plant’s operations is critical to maintaining Romania’s independence in steel supply, especially for industries such as defense, shipbuilding, energy, and infrastructure.

The situation is complicated by the fact that EU access to imported steel may be significantly reduced as early as next year. This will be due to stricter quotas and increased duties, which are planned to be introduced instead of the current protective measures, as well as the entry into force of the Cross-Border Carbon Adjustment Mechanism (CBAM) in 2026. This makes the issue of stable domestic steel production even more relevant.

Steel Mont’s proposal is based on a comprehensive approach, including the supply of raw materials, tolling operations, the purchase of finished products and, if necessary, the possibility of further full acquisition of the plant.

“The consortium combines international experience, raw material security, and financial stability, based on SteelMont,” the company said in a statement.

At the same time, in September, the Romanian authorities created an interdepartmental committee to protect the state’s interests in Liberty Galați and prevent the company from going bankrupt. The plant itself shut down after a failed attempt to restart in June this year. Its production capacity is about 3 million tons of steel per year.

It should be recalled that in early August, Liberty Galati received approval for its restructuring plan from the majority of creditors and confirmation from the Galați court. In particular, it includes the repayment of a significant portion of the company’s debt, full payment of wage claims, including in Belgium, in the amount of 497 million lei, full payment for the services of major suppliers, and payments to secured and unsecured creditors.