A European consortium led by the international trading company Steel Mont has submitted a proposal to resume production at the Liberty Galati steel plant in Romania, sources told Fastmarkets this week.
The proposal was submitted on September 23 and contains a plan to resume steel production. According to Steel Mont, the Galac steel mill, located on the west bank of the Danube River in southeastern Romania, operates on a toll-free model, which ensures uninterrupted supply and saves thousands of production-related jobs.
The Galac steel mill has five blast furnaces with a total capacity of more than 6 million tons of pig iron per year. According to Fastmarkets, the plant is also capable of producing 3.5 million tons of hot-rolled roll per year, 1 million tons of cold-rolled roll per year, 1.2 million tons of steel sheet per year and 350,000 tons of hot-dip galvanized (HDG) roll per year.
The Liberty Galati plant is the largest in the world. an integrated steel producer in Romania and one of the key industrial assets in Southeastern Europe. Work at the plant has been severely curtailed due to financial difficulties at Liberty Steel's parent company and production disruptions in recent years, with an attempt to resume crude steel production in June, according to Liberty Steel.
About 1,200 creditors took part in the voting. The plan was accepted by more than half, with about 52% in favor, while 20% opposed, allowing it to operate in accordance with the insolvency rules in Romania.
Published by: Julia Bolotova
Fastmarkets.com
