Steel Production Restarts at LIBERTY Galati

LIBERTY Galati has resumed steel production operations by reactivating Blast Furnace No. 5—marking a significant step in the company’s plan to continue operating as a strategic pillar of Romania’s national economy and local community. LIBERTY Galati is a key steel supplier contributing to the country’s development and security, a major employer, and one of Romania’s largest taxpayers, with around €100 million paid annually in taxes and fees to the state and local budgets. Radu Ionescu, General Manager of LIBERTY Galati, stated: “LIBERTY Galati is Romania’s leading steel producer, with a major impact on our country’s economy. With the restart of Blast Furnace No. 5 and rolling mills operations, we will deliver high-quality Romanian steel to our customers, support strategic sectors, and secure a significant number of jobs across the vertical supply chain. This is possible with the support of Exim Banca Româneasca and national and local authorities. We are grateful to our government partners and to experts from EuroInsol and Sierra Quadrant who help LIBERTY Galati continue as a strategic player in both the Romanian economy and the Galati community.” Remus Borza, President of EuroInsol, commented: “I’m pleased to see that restarting LIBERTY Galati’s production has been a real success—nearly a year after the shutdown—following intense negotiations, integrated strategies, and cost optimization. This restart is critical to the success of the restructuring plan. The team has worked diligently to resume operations, optimize raw material costs, and rebuild supply chains. LIBERTY Galati remains a key regional steel producer in today’s economic and geopolitical context—not just for Romania, but for Europe as a whole, especially looking ahead to Ukraine’s reconstruction. I remain confident in the future of Galati’s steelworks, in the steel industry itself, and in its strategic role within Romania’s economy.”   Earlier this week, Blast Furnace No. 5 was charged, and as of 8:00 a.m. today, hot metal production has resumed. The first batch of hot metal is expected tomorrow, with steel production starting 3–4 days later after chemical composition stabilization. By next week, steel will reach the Continuous Casting section, then move on to the Rolling Mills for the production of heavy plate, galvanized sheet, pre-painted steel, pipes, coils, and more. In the first two weeks, average daily hot metal production is expected to be around 3,800 tons—equivalent to about 4,300 tons of steel—with plans to gradually increase to 5,500 tons/day (around 6,500 tons of steel), which is the breakeven point.   Parallel to the production restart, negotiations continue with approximately 1,200 creditors for the approval of the Restructuring Plan, set to be confirmed by the Galati Tribunal by July 5.   The LIBERTY Galati action plan aims to achieve positive EBITDA within two years, grow its order portfolio in strategic industries such as defense, infrastructure, construction, and shipbuilding, and improve operating costs. LIBERTY Galati is also implementing initiatives to preserve the value of Romanian assets, monetize non-core assets (such as real estate), and identify new funding sources. “Our business plan includes operational, commercial, and financial measures, along with a robust energy strategy, given that energy prices have been the main challenge for Romanian steel producers—who, unlike many European competitors, have not received subsidies,” added Radu Ionescu.   In today’s geopolitical context, steel demand is stabilizing, supported by EU trade measures, strategic backing, and the CBAM regime. The newly imposed EU import restrictions and Ukraine’s future reconstruction are expected to boost steel demand—especially for high-quality products made in Galati. Moreover, the EU’s increased focus on defense and other key industries is likely to drive steel demand and prices in the medium to long term.   LIBERTY Galati is Romania’s largest integrated steel producer, with an annual production capacity of approximately 2.5 million tons. It serves clients in the construction, shipbuilding, oil & gas, and energy sectors.