Romania helps steelmaker Liberty Galați with capital, orders for defense industry

The integrated steel mill Liberty Galați in Romania, one of the last crude steel producers in the region, will provide raw materials for the Romanian defense industry, announced the minister of economy, Bogdan Ivan, Profit.ro reported. The government will also help the company, which recently announced pre-insolvency procedures to address weak demand and effects of the import duties announced by the US, resume operations at its furnace.

Among the potential beneficiaries of the Galați unit are the armament factories in Brașov, Cugir, Sadu, and Dragomirești, the minister said.

The Ministry of Economy allocated from the national budget for 2025 RON 1 billion (EUR 200 million), in addition to current expenses, for the production of ammunition and military equipment. The defense industry has gained greater importance, given that, in the context of current international geopolitical and geostrategic changes, the European Union wants to increase strategic autonomy and strengthen defense capabilities, having already announced the launch of a program - ReArm Europe - which would mobilize, in the first phase, funds of EUR 150 billion, from a larger plan, worth EUR 800 billion.

In related news, Romania’s think-tank Energy Policy Group has published a report on the outlook for Romania’s steel industry – which faces high and volatile energy prices, uncertainty around future hydrogen and steel scrap availability, constrained capacity to secure financing, and the lack of a green steel market.

“With significant renewable energy potential, an important automotive sector, and booming infrastructure development, Romania is well-positioned to advance a transition to competitive low-carbon steel,” the report concludes, among others.

(Photo source: the company)