Hungary’s Economic Development Ministry announced that Liberty Steel has emerged as the successful bidder to acquire the assets of Dunaferr, a Hungarian steelmaker currently undergoing liquidation. Liberty Steel offered EUR 55 million (USD 60.5 million) for the purchase of Dunaferr’s assets.
Among the contenders in the bidding process were Vulcan Steel from India, Metinvest from Ukraine, Trasteel Trading Holding based in Switzerland, and Trinec Property from Hungary.
To ensure the uninterrupted operations of the company and restart production at its second furnace, Liberty Steel has already supplied 40,000 tons of coal to the Hungarian factory by January. Furthermore, in February, the company reached an agreement with the government on a contract manufacturing arrangement to produce hot-rolled coil for its coil coating operations.
While the successful sale of the assets is considered a significant milestone, Hungary’s economy ministry emphasized that there is challenging work ahead. The steelworks facility requires reorganization and substantial advancements to transition to greener production technologies.
Liberty Steel will need to make substantial investments to revive the company. To regain environmental permits alone, the new owner must inject USD 107 million.
Dunaferr entered liquidation in mid-December 2022, burdened by a reported debt of EUR 1.3 billion (USD 1.43 bln) by the end of 2022. The company’s financial struggles were exacerbated by low steel prices, rising energy costs, and supply chain disruptions following the Russia-Ukraine war.
Dunaferr’s annual crude steel production capacity is 1.4 million tons. The company specializes in the production of HR, CR, and galvanized steel.
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