Romania's sole integrated steel producer, Liberty Galati, is making another attempt to attract buyers after two unsuccessful auctions, this time with a significantly lower asking price. According to local media reports, the company's creditors have approved a revised restructuring plan, reducing the minimum selling price for the steelworks and its tubular division from €463 million to €200 million, excluding VAT, a drop of almost 57 percent. The assets were initially offered for around €709 million, but neither of the previous auctions attracted buyers. Under the new plan, the facilities will be offered through direct negotiations rather than another public auction.
The revised approach comes as five potential investors have reportedly shown interest in acquiring the facilities, including India's Jindal, Ukraine's Metinvest, Romania's UMB, Iraq's Galiwa and China's Risun, although their identities have not been officially confirmed. Three of them have already assessed possible investment opportunities, but no binding offers have been announced so far. The restructuring plan still requires court approval, after which the conditions and timetable for submitting offers are expected to be announced.
In the meantime, the Romanian government is continuing its efforts to prevent the steelworks from entering bankruptcy. The authorities have announced plans to extend salary support through the Wage Guarantee Fund for another six months, covering around 2,400 employees and providing additional time to secure a buyer.
The need to find an investor remains particularly important given the prolonged production difficulties at Liberty Galati. The plant has an annual crude steel production capacity of around 3 million mt and has faced repeated disruptions since mid-2024. Its tubular division, with an annual welded pipe production capacity of around 50,000 mt, resumed limited operations in September this year after several months of low activity. However, both facilities have been affected by a temporary suspension of operations since November 1 due to ongoing financial difficulties, with most employees placed on temporary layoff. With production currently suspended and no restart date announced, the future of the facilities remains closely linked to the outcome of the ongoing efforts to find a buyer.
