LIBERTY Galați Resumes Steel Production After Year-Long Downtime

LIBERTY Galați Restarts Production After Year of Downtime

LIBERTY Galați, Romania’s largest steel mill, has resumed production after nearly a year of inactivity. On June 4, the company restarted its pig iron smelting process with the launch of Blast Furnace No. 5, marking a significant milestone in its restructuring plan. This resumption signals a revival for the mill, which is a strategic asset for Romania’s economy.

The restart of production is essential for supplying high-quality domestic steel for critical sectors like defense, infrastructure, construction, and shipbuilding. LIBERTY Galați expects to create new jobs in related industries as part of the revitalization process. Steel production is set to begin shortly after stabilizing the chemical composition of the pig iron.

Production Ramp-Up and Market Expectations

The company plans to ramp up steel production progressively. Initially, daily steel output will be around 4,300 tons, with an expected increase to 6,500 tons once the operation reaches its break-even point. The steel produced will be processed into plates, galvanized products, pipes, and coils for various industries, including defense and construction.

This significant ramp-up comes after a prolonged downtime caused by several challenges, including geopolitical tensions, high energy costs, and heavy imports from outside the EU. These factors have made it difficult for the company to maintain competitive steel production.

Government Support and Future Outlook

The Romanian government has extended support to LIBERTY Galați to help resume its operations. Minister of Economy, Bogdan Ivan, highlighted the plant’s role in supplying raw materials to defense industry plants in key Romanian locations. The company will also be pivotal in aiding the reconstruction efforts in Ukraine, which requires substantial steel products for rebuilding critical infrastructure.

LIBERTY Galați pays up to €100 million in taxes annually and remains one of the region’s largest employers. The plant’s recovery is a positive development for both the local economy and regional industries.

SuperMetalPrice Commentary:

LIBERTY Galați’s resumption of production is a significant development for the European steel market, especially amidst the backdrop of ongoing global trade uncertainties. With the added support from the Romanian government and the mill’s strategic importance, this restart not only benefits Romania but could also play a crucial role in rebuilding Ukraine. As LIBERTY Galați ramps up production, it will need to navigate challenges related to high energy costs and foreign competition. The company’s success will be vital in shaping Romania’s role as a key player in the European steel industry.