Romania's sole flat steel producer Liberty Galati has signed its first tolling agreements with UK-based Glencore and with Turkey-based Kayseri Metal Center through the latter's Romanian subsidiary Ripen, as it seeks to resume limited activity amid ongoing financial difficulties and the absence of a new investor. The plant has remained largely inactive for a prolonged period, while efforts to secure a buyer have yet to produce a concrete result. The new agreements may allow the company to gradually bring some of its rolling facilities back into operation without financing the required material itself.
According to the agreements, Glencore and Kayseri Metal Center, through Ripen, will supply the semi-finished steel required for the production of heavy plate, hot rolled coil and organic-coated sheet. Liberty Galati will roll the material and receive a processing fee, allowing it to operate selected facilities without purchasing the required feedstock itself. The rolling mills are expected to restart gradually, while additional tolling orders may follow depending on the results of the first campaign. However, no start date, production volumes or details regarding the duration of the campaign have yet been announced.
Despite this step, Liberty Galati's overall outlook remains challenging. The company remains under preventive restructuring and continues to face serious financial and liquidity problems. Two attempts to sell the steelworks and its affiliated pipe producer ended without a buyer, even after their combined starting price was reduced from €709 million to €463 million. India's Jindal Group has recently shown renewed interest in the plant, but no binding agreement has been reached. Production remains suspended, while employees have reportedly not received their salaries for several months. Against this background, the tolling agreements may help restore limited activity, but they do not yet represent a full restart or a long-term solution for the producer.
