Romania's largest metallurgical plant, Liberty Galai, has resumed production by restarting blast furnace No. 5. The company, which is part of Liberty Steel, announced this on its website on June 4.
The resumption of work at the Galac plant almost a year after the shutdown of production is followed by a period of optimization of raw material costs and restoration of supply chains.
The first batch of liquid pig iron was scheduled to arrive on June 5, and steel production was scheduled to begin in three to four days. During the week from June 9 to June 15, steel casting will begin, after which the rolling mills for the production of thick sheets, galvanized coils and pipes with organic coating will resume.
The resumption of operations was made possible thanks to the support of Exim Banca Romaneasca and national and local authorities, according to the steel mill's CEO Radu Ionescu, who also thanked experts from insolvency consulting companies Euro Insol and Sierra Quadrant, "who help Liberty Gala remain a strategic pillar of the Romanian economy and the Galactic community."
In the first two weeks, production is expected to average 3,800 tons of liquid pig iron per day, equivalent to about 4,300 tons of steel per day. This figure will gradually increase to 5,500 tons of liquid pig iron per day, which is equivalent to 6,500 tons of steel per day, which, according to the company, is the break-even point.
Action plan
In parallel with the resumption of production, negotiations will continue with the company's 1,200 creditors, demanding the approval of a restructuring plan, which is expected to be approved by the Galac court by July 5.
Liberty Gala'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 reduce operating costs. According to Remus Borza, President of Euro Insol, the company is also implementing initiatives to preserve the value of Romanian assets, monetize non-core assets and find new sources of financing.
"Our business plan includes. a strong energy strategy, given that energy prices were the main factor affecting profits. This is a difficult task for Romanian steel companies, which do not benefit from subsidies like most steel producers in Europe," Ionescu said.
In March, the Galati Court launched a lawsuit against Liberty Galati and its creditors aimed at preventing the insolvency of the plant by restructuring its debts. A consortium created by Euro Insol and Sierra Quadrant has been appointed as the administrator.
Steel demand has started to stabilize due to
