Romania’s sole flat steel producer Liberty Galati is preparing to resume operations after nearly seven months of inactivity, following a failed sale process in which the asset was deemed overpriced and failed to attract buyers. After the unsuccessful process, the Romanian government stepped in, declaring the company an operator of strategic economic interest and enabling financial support measures aimed at stabilizing operations.
According to official statements and local media reports, the decision allows the company to access state-backed funds through the national Guarantee Fund to cover unpaid wages for nearly 3,000 employees. The payment backlog had built up after the company suspended most of its operations in recent months, placing a large share of its workforce on technical unemployment.
Preparations to restart operations at the Galati steelworks are reported to have begun, with market sources indicating that any restart is likely to be gradual. Initial activity is expected to focus on rolling mills, mainly under tolling arrangements. However, sentiment in the market remains cautious. Despite the state intervention, Liberty Galati is still seen as being in a debtor position toward both the state and private counterparties. Combined with previous disruptions in order fulfillment and delayed payments, this continues to weigh on the company’s credibility and raises doubts over its ability to secure new orders in the near term.
“Given the previous issues with unpaid obligations and operational disruptions, it remains unclear how quickly the company can regain market trust and attract fresh orders,” a regional source told SteelOrbis.
