Romania’s steelmaker Liberty Galati set to avoid insolvency, helped by EU’s revised policies

Liberty Galati, the sole integrated steel producer in the region, hopes to resume full operations at a capacity of 2 million tonnes per year, about two-thirds of its nameplate capacity according to the pre-insolvency request approved by the court this month – and the revised European Union’s strategies in the sectors of defense and energy may help it survive.

Liberty Galati has two months to come up with a recovery plan, which must necessarily envisage an output of over 172,000 tonnes per month, according to the pre-insolvency request consulted by Profit.ro. The European Union’s plan to boost defense manufacturing, address the imports of cheap steel, and set more realistic decarbonization targets may come just in time to help the company recover when its survival seems at stake.