The Luxembourg government has sent a court-appointed liquidator a proposal to acquire the bankrupt Liberty Steel electroplating plant and service center in Dudelange. His goal is to redevelop the site for other uses, rather than resume steel production.
According to the Luxembourg Ministry of Economy, after almost three years of production shutdown, the site represents a strategic opportunity for reconstruction. The goal, according to a ministry memo received by Callanish, is to optimize land use and redesign the facility to support industrial renewal and stimulate economic growth.
"If this proposal is accepted, the Ministry of Economy will begin land development in order to create new industrial enterprises and promote the creation of high-value-added jobs. The government will also consider the possibility of allocating part of the territory for defense-related projects," the report says.
No other buyers have yet appeared for the Dudelange site and the Liberty Steel plant in Liege. Despite ongoing efforts to find potential investors, both companies still have no realistic acquisition prospects, mainly due to structural problems in the European steel market and restrictive trading conditions.
In May, the sale of the Dudelange plant was suspended after a rumored bidder, Tosyali, withdrew its interest. It is reported that another potential buyer recently visited the Dudelange site, although the interested party is also reportedly located outside the EU.
The EU quota system is the main obstacle to any acquisition of land in both Dudelange and Liege. The main problem lies in the limited opportunities for importing hot-rolled rolled raw materials from outside the EU, which significantly undermines the competitiveness of the enterprise and its production viability.
Natalia Capra France
kallanish.com
