Romania’s sole flat steel producer, Liberty Galati, is in turmoil as a result of persistent financial issues, much like other steel producers in Romania. It has been eight months since the closure of Liberty Galati's last operating blast furnace, and the plant's management has yet to provide any clarification.
However, reports have surfaced in the market that the steel mill is delaying salary payments, that its debts are mounting, and that commercial disagreements are multiplying. According to sources, although management has managed to pay staff monthly and prevent layoffs, business activity has ceased entirely, and employees are becoming increasingly disgruntled. Alongside these reports, it heard that more than 50 firms have sued Liberty Galati to recoup money that the Galati steel factory owes them.
As the rumors circulate, Romanian market participants became concerned that Liberty Galati may face bankruptcy if the scenario continues, similar to Ostrava which is a Liberty asset in the Czech Republic, acquired back in 2019. However, even if financial assistance is obtained to restart the blast furnace, the question still remains as to how viable it would be to restart the blast furnace in the current economic situation in Europe.
