There were no potential buyers for the Liberty Steel plant in Dudelange after the suspension of the sales process last month, after Tosyali's bidder was rumored to have refused to bid.
Informed sources tell Kallanish that the main goal of the court-appointed managing director of Dudelange and the Luxembourg Government is still in favor of selling the facility. However, despite requests from interested steel companies, no official proposals have been received.
The plant employs about 140 people after a recent staff reduction. Trade union representatives expressed skepticism about the likelihood of a sale. In coordination with the Government, trade unions are currently organizing a "work day" campaign aimed at helping workers find alternative employment opportunities.
"Tosyali had a good industrial project for Dudelange," the source explains. "They were going to invest and expand in the European market. The official reason for the recall is the strict EU import quotas for rolls, which would not allow Turkish-made rolls to be supplied to Dudelange."
The company has not operated for more than two years, with the exception of production tests conducted in July 2024. Currently, a small team of specialists is working at the Dudelange facility, performing maintenance on the main equipment. The Luxembourg Government has appointed Olivier Wagner in charge of the operation. He is reportedly pessimistic about the prospects of a future sale.
The Government retains ownership of the land and is expected to grant new concession rights to the potential owner. Tosyali was unavailable for comment until the deadline set for the press.
In December, the Luxembourg Commercial Arbitration Court declared the Dudelange company bankrupt (see "Callanish" dated December 4, 2024). In addition to the Dudelange plant, Liberty plans to sell its Magona plant in Italy and the Liege plant located in Belgium. The combined capacity of the three enterprises for the production of rolled products exceeds 2.5 million tons per year.
The Magona plant continues to operate, but it is operating at half or even less than its production capacity. According to a source in Italy familiar with the situation, a potential buyer has been identified and the sale process is currently underway. The source attributes this progress mainly to the active participation of the government, which actively sought to find a buyer for this site.
On April 22, Liberty Steel's plant in Liege, Belgium, was declared bankrupt. According to sources, NLMK and ArcelorMittal are potential buyers.
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