Romanian steel producer Liberty Galați has placed most of its approximately 2,200 employees on technical unemployment starting November 1, 2026, amid ongoing financial and operational difficulties, according to local media reports. The measure, which also applies to employees of Liberty Tubular Products, involves the temporary suspension of activities throughout November, while a limited number of workers will continue to carry out essential maintenance, security and equipment preservation operations.
According to an internal notification issued by the company's management on October 29, the decision was taken due to severe difficulties, including problems related to electricity supply and employee transportation. The exact number of employees affected has not been specified, as staffing arrangements for essential operations are being determined by individual departments.
Liberty Galați faces unpaid wages and electricity supply problems
The decision comes as Liberty Galați continues to face financial difficulties, with employees reportedly having received no salaries since May. On October 30, approximately 300 employees protested outside the Galați Prefecture, demanding payment of outstanding wages, access to the wage guarantee fund and acceleration of the plant's sale process.
Meanwhile, the plant's management warned in an open letter in late October that the company's financial situation had become critical, citing insufficient resources to pay employees and suppliers, as well as difficulties maintaining electricity supplies and essential operations. The company's executive management also offered to resign amid the worsening situation.
Liberty Galați reportedly avoided disconnection from the electricity grid at the end of October after electricity supplier Electrica Furnizare agreed to continue supplying power for a limited period. The company had previously warned that a power disconnection could damage industrial equipment and complicate the eventual restart of production. In addition, the company responsible for transporting employees to the plant terminated its contract.
Restructuring and €200 million sale plan face delays
At the same time, the restructuring and sale process for Liberty Galați remains unresolved. A meeting of Romania's interministerial government committee scheduled for October 30, during which the restructuring plan was expected to be discussed, was cancelled, delaying consideration of the proposed sale arrangements.
According to Romanian media reports, the revised restructuring plan provides for a minimum sale price of €200 million, requiring the prospective investor to pay the amount in full and commit to restarting production. However, the plan has not yet been approved.
In October, the plant's estimated liquidation value was revised downward to €182 million, providing a reference point for creditors considering the proposed direct sale. Previous attempts to sell the steelworks through public auctions, with starting prices of €709 million and €463 million, were unsuccessful.
Liberty Galați has an annual steel production capacity of up to three million mt, with products supplied to industries including construction, infrastructure, automotive, shipbuilding, energy and defense.
