Following the insolvency of the Czech Republic-based steelmaker Liberty Ostrava, a consortium led by Martin Pecina, former deputy prime minister of the country, has acquired the plant for CZK 3.01 billion ($145.5 million), according to local media reports. The plant will now operate under the new name Nová Huť and is preparing for a large-scale modernization program backed by significant capital investments.
With bold plans for restructuring and investment, the new ownership aims to restore the site’s competitiveness, modernize operations, and reposition the plant within Europe’s evolving steel sector.
A strategic restart for Czech steel
The acquisition marks the beginning of a broad restructuring aimed at stabilizing the plant’s operations, reducing costs, and securing its long-term future. The strategy combines asset consolidation, workforce realignment, and the renewal of core production facilities. Older or non-essential units may be phased out.
Green steel transformation
Central to the investment program is the adoption of advanced, environmentally sustainable technologies. Plans include the installation of two hybrid electric arc furnaces (EAFs) to replace older blast furnaces. These units will enable flexible steelmaking using a mix of hot metal, direct reduced iron (DRI), hot briquetted iron (HBI), and scrap, significantly lowering carbon emissions.
Earlier commitments earmarked CZK 8.6 billion for this transition, with the goal of reducing emissions by over 80 percent by 2027.
Investment scope and financing
The new owners plan to prioritize investment within the plant’s existing footprint, avoiding unnecessary land expansion while modernizing current facilities. Total capital expenditures, including contingencies and financing costs, are expected to exceed CZK 3.3 billion ($159.58 million) during the initial phase.