Romania’s largest flat steel producer, Liberty Galati, has been under severe financial and operational strain for nearly a year, with steel production largely suspended amid persistent liquidity shortages, prolonged wage payment delays and minimal output. Against this backdrop, the company has reached a critical turning point after it received court approval for its recovery plan, formally allowing its restructuring process to move forward. As a result, Liberty Galati has entered a decisive phase in its reorganisation, with its assets expected to be offered for sale through an international process in March, at an estimated valuation of around €690 million, according to official announcements.
Local sources report that around 13 potential investors have already expressed preliminary interest, including both international and domestic groups. These reportedly include India’s JSW Steel and Jindal Group, Iraq-based Galiawa Group, China’s DeLong Steel, Turkey’s KMC Steel, Ukraine’s Metinvest and Romania’s UMB Grup, which recently agreed to acquire the assets of ArcelorMittal Hunedoara.
However, the sale is considered highly sensitive, as the Romanian state and state-owned financial institutions remain among the largest creditors. Consequently, the outcome of the auction is seen as critical not only for debt recovery but also for downstream sectors such as construction, shipbuilding and infrastructure. Market participants, therefore, view the upcoming sale as a key turning point, which could either enable a restart under new ownership or further deepen uncertainty surrounding one of Romania’s most important steel assets.
