Romania’s steel mill Liberty Galati idles again on adverse market conditions
<p>Liberty Steel (formerly known as Sidex), Romania’s integrated steel mill and Liberty’s only blast furnace operating in Europe, has again suspended the operation due to the difficult market conditions, <a href="https://www.argusmedia.com/en/news-and-insights/latest-market-news/2572725-liberty-steel-idles-galati-blast-furnace-in-romania?mc_cid=2b193436ff&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Argus Media</a> reported.</p>

<p>The blast furnace was reopened in mid-February after the Government extended guarantees for a EUR 150 million loan from Exim Banca Romaneasca (formerly Eximbank).</p>

<p>A company spokesperson told the news agency that the decision was made to introduce a temporary period of hot downtime and continue to operate the processing plants using slab stocks to ensure profitable and stable production in Galati.</p>

<p>The blast furnace at Liberty Galati in Romania has operated on and off for a year already, and, financially, the company is facing financial challenges.&nbsp;</p>

<p>Closed down in October due to adverse weather (low water level of Danube), the furnace resumed operations on December 9 to stop operations during the Christmas period due to problems with the raw material supply. The furnace reopened in mid-February after state-owned bank Eximbank extended a EUR 150 million loan with state guarantees.</p>

<p>On the financial side, Liberty Galati is subject to tens of insolvency requests filed by small-sized suppliers that report that the payment discipline has deteriorated over the past year.&nbsp;</p>

<p>The company claims that these are insignificant cases that are being settled.&nbsp;However, the appointment of a lawyer (Radu Ionescu) at the top of the company was interpreted as a precautionary measure ahead of more significant legal complications being expected.&nbsp;</p>

<p>According to market sources quoted by Argus, Liberty used financing from Exim Banca Romaneasca to purchase raw materials for the blast furnace.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: the company)</em></p>