Liberty Galati has resumed pig iron production at Blast furnace No. 5 after almost a year-long hiatus. The production of liquid steel will begin by the weekend, and next week continuous casting and rolling in Kallanishe will begin.
It is expected that during the first two weeks, the average daily production volume will be 3,800 tons of pig iron, which is equivalent to about 4,300 tons of steel per day. According to Galati, this figure will gradually increase to 5,500 tons of pig iron per day, which is equivalent to 6,500 tons of steel per day, in order to reach the break-even point.
In parallel with the resumption of production, negotiations are continuing with about 1,200 creditors of Liberty Galati on the approval of the steel mill."the restructuring plan, which is expected to be approved by the Galac court by July 5.
Galati's action plan aims to achieve positive Ebitda over the next two years, expand the portfolio of orders in strategic industries such as defense, infrastructure, construction and shipbuilding, and improve operational costs. The company is also implementing initiatives to preserve the value of Romanian assets, monetize non-core assets such as real estate, and identify new sources of financing," says Remus Borza, president of EuroInsol, an insolvency consultant working with Galati on the restructuring process.
"Steel demand has started to rise for stabilization, supported by European Union trade measures, strategic support and the CBAM regime," Liberty Galati notes. "It is expected that the new import quotas introduced by the EU, as well as the future reconstruction of Ukraine, will positively affect the demand for steel, including for high-quality products produced in Galac. The EU's focus on the defense industry and other key sectors will further stimulate steel demand and pricing in the medium and long term."
In March, the steel company signed an agreement with the Romanian government to provide a 350 million euro ($377 million) working capital loan from the Romanian government. Eximbank will finance the supply of raw materials. The original deadline for resuming production was April 22.
Adam Smith Poland
kallanish.com
