Liberty has signed a consulting services agreement to assist Hungarian producer Dunaferr, which is now restarting its second blast furnace, as well as its steel mill. It supplies coke to the plant to keep its furnaces running and is also reportedly in the market for other raw materials. The furnace was restarted using raw materials that were already on site, but union sources say they will run out soon.
The Hungarian state pays wages to Dunaferr workers and guarantees electricity supplies to help restart business.
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“Further steps will be required to ensure a long-term sustainable business future. Liberty is committed to using its experience to help Dunaferr take these steps,” Liberty said, suggesting it has “repeatedly demonstrated its success in stabilizing underfunded strategic and complex steel companies, significantly improving their operational, commercial and financial position.” .
Liberty had its financial problems. The company said last month it was shutting down three of its UK operations and cutting jobs due to weak markets and high energy costs. The company is also in talks to sell its Dudelange zinc plant to the Luxembourg State, which will then try to find a buyer. But the two sides have yet to agree on a price. The plant, along with Liberty's Liege facility in Belgium, has been idle for several months.
The company is expected to restart the blast furnace at its Galați facility in Romania in the coming weeks after being shut down late last year. the only working installation.
