Romanian steelmaker Liberty Galati, part of the Liberty Steel Group, has entered a pre-insolvency procedure to stabilize its business, optimize resource allocation, and attract new investments. The move comes amid geopolitical challenges, high energy prices, and a surge in steel imports into the EU.
Liberty Galati General Manager Radu Ionescu cited market pressures, including the prolonged Ukraine war, US tariffs on steel imports (25pct as of March 12), and the EU’s lack of protective measures for the steel industry. The company aims to use this process to channel financial resources toward restarting operations and achieving sustainable production levels.
The steel mill, which has a 3 mln-ton liquid steel capacity, has been struggling with delayed salaries, unpaid suppliers, and a shutdown of its only blast furnace for nine months. Liberty Galati is reportedly awaiting a crucial loan from state-owned Exim-Banca Romaneasca to resume operations.
“We are dependent on the Exim loan. The first tranche helped settle contractor payments and energy bills, but the second tranche has been delayed. We expect the funds soon to restart operations,” company management stated.
Meanwhile, the Romanian government has appointed Dan Sandu, CEO of the Investment and Development Bank, to Liberty Galati’s board. However, it remains unclear whether the state bank will provide financial support.
