The proposals to acquire Liberty Steel's facilities in Dudelange (Luxembourg) and Ostrava (Czech Republic) seem to put an end to a long period of uncertainty about their future.
A consortium of companies – SPV NH Ostrava and SPV NH Koksovna – agreed to acquire the main plant and the coke chemical complex of the bankrupt Liberty Ostrava plant worth 3.01 billion Czech crowns (122.6 billion euros). The Luxembourg government, meanwhile, made an offer to the liquidators for the freedom of Dudelange steel.
MEPs international steel market analyst, Chris Jackson, stated that certainty about the future of Ostrava would provide a "timely boost" for long-range buyers in Central Europe and beyond. He said:"Ostrava was the largest steel producer in the Czech Republic, and crude steel production declined significantly when it ceased operations.
"It is likely that the company will continue to operate with a reduced workforce compared to what it was at the peak of its productivity, but its success is key to the local economy."
The consortium, which plans to acquire the plant in Ostrava, plans to continue the production of long products. Liberty Steel resumed production at the plant last fall, ahead of attempts to sell the plant, which began in February. At full capacity, the Ostrava plant will produce 3.6 million tons of steel per year, employing about 6,000 people. Its acquisition must be approved by the Insolvency Court and the Czech Competition Authority (UOHS).
The company plans to increase the cost of the Dudelange site.
In contrast, the site of the bankrupt electroplating plant and the Dudelange service center will be cleared to make way for new businesses offering "high-value jobs," according to plans unveiled by the Luxembourg government. The 16-hectare site has been idle for three years. In May, the Turkish company Tosyali Holding abandoned its interest in buying the company, citing a review of EU import protection measures.
The acquisition of Ostrava will inspire optimism in the future of another former company. The Liberty Steel plant was built by order of the Polish Ministry of Defense in Czestochowa Ghuta. The completion of this deal has become a step closer after earlier this month a Polish court agreed to the valuation of the site at 253.8 million Polish zloty.
Respondents from Central Europe interviewed by MEPS research during the International Steel Review[url= / / /gb/en/products/international-steel-review] [/url]note that production volumes have remained lower since the resumption of work in January. a potential one. However,
