Romania’s sole flat steel producer Liberty Galati continues its restructuring process, with administrators now preparing a new international sale attempt at a significantly reduced valuation in an effort to attract investors and stabilize the company’s future. The latest developments come as the plant remains largely inactive despite earlier expectations for a gradual production restart around April, while uncertainty regarding the company’s long-term outlook continues to weigh on the local market. At the same time, the Romanian authorities have maintained support for the restructuring process through various state-backed measures, as market players increasingly focus on whether Liberty Galati can eventually restart operations under a new investor structure.
According to the latest restructuring plan submitted to the Galati Court, Liberty Galati could now be sold through a new auction starting from at least €444 million, almost half the level of the previous sale attempt launched in March, when the company had reportedly been offered for around €709 million. That earlier process ultimately failed to attract any binding offers despite reported interest from several international investors and steel groups. At the time, market sources indicated that potential buyers from countries including Turkey, Ukraine, China and India had been linked to preliminary interest in the asset, though no formal acquisition process moved forward. Market participants largely viewed the previous valuation as unrealistic considering the company’s financial difficulties, inactive production facilities and the weak overall outlook in the European steel sector.
Despite the lower valuation and continued state support efforts, uncertainty surrounding Liberty Galati remains elevated, especially following fresh reports regarding the use of financing granted through Romania’s state-backed lender Exim Banca Romaneasca. According to Romanian media reports, questions have been raised regarding how part of the loans intended to support operational recovery and restart activities was utilized, with allegations that some funds may instead have been redirected toward covering overdue debts and supplier obligations. Although no official conclusions have yet been announced, the reports have further weakened confidence among local market players, adding another layer of uncertainty to the company’s already fragile restructuring process.