Romanian company UMB Steel, which was previously reported by SteelOrbis to have purchased the Otelu Rosu steel plant in order to restart production and modernize it with an investment of €300 million, has now sent a letter of intent to the Romanian government and to the administrators of Liberty Galati and its subsidiary Liberty Tubular. The company aims to urgently acquire the entire Liberty Galati steel complex.
According to details of the proposed acquisition, if UMB Steel buys the plants, it would only cover debts owed to two main creditors, the state-owned EximBank and the National Tax Administration Agency (ANAF). Once UMB Steel takes over, more than a thousand other creditors, including suppliers, public institutions and private companies, could receive nothing, as the plant’s assets would be transferred to UMB Steel, leaving no collateral available to repay the others.
Meanwhile, UMB Steel argues that the takeover is urgent, citing the ongoing deterioration of the plant’s facilities and warning of the risk of it losing its economic potential if the process is delayed. If the takeover moves forward as planned, production could restart under UMB Steel, which would be positive for workers and the local steel industry.
However, several reports suggest that the proposed deal could be viewed as harmful rather than a true restructuring, as it would mainly benefit state-linked creditors while putting many local businesses and jobs at risk. Many suppliers and partner companies may lose significant amounts of money, potentially hurting the regional economy of Galati and neighboring counties. Local media also express serious concern for thousands of jobs, both directly at the plant and indirectly in the wider supply chain.
The Liberty Galati steel complex includes an integrated flat steel plant with an annual crude steel capacity of about 3 million tons, producing hot rolled and cold rolled coils, galvanized sheets and plate, along with a tubular unit capable of making around 200,000 mt of pipes and tubes per year. Meanwhile, UMB Steel’s Otelu Rosu plant, still under modernization and not yet operational, has a planned capacity of about 850,000 tons per year, aimed at producing billets, rebar, wire rod and structural steel for infrastructure and construction. The Targoviste steel plant remains Romania’s only major producer of long steel products, such as rebar, wire rod and structural sections, with an installed capacity of roughly 500,000 mt per year, supplying much of the country’s domestic reinforcing steel demand.
