Liberty Galati is taking a step towards resuming operations through tolling agreements with Glencore and Kayseri Metal Center.

The only Romanian manufacturer of rolled steel, Liberty Galati, has signed its first toll agreements with British Glencore and Turkish Kayseri Metal Center through its Romanian subsidiary Ripen, seeking to resume limited operations amid ongoing financial difficulties and the absence of a new investor. The plant was practically inactive for a long period, and efforts to attract a buyer did not lead to a concrete result. The new agreements may allow the company to gradually put part of the rolling facilities back into operation without financing the necessary material itself.

According to the agreements, Glencore and Kayseri Metal Center will supply semi-finished steel products through Ripen, which are necessary for the production of thick-rolled products, hot-rolled coils and sheets with organic coating. Liberty Galati will roll the material and receive a processing fee, which will allow it to operate the selected facilities without purchasing the necessary raw materials on its own. It is expected that the rolling mills will be restarted gradually, and depending on the results of the first campaign, additional orders for toll-free processing may follow. However, neither the start date, nor the production volumes, nor the details regarding the duration of the campaign have yet been announced.

Despite this step, Liberty Galati's overall prospects remain challenging. The Company continues to undergo preventive restructuring and continues to face serious financial and liquidity problems. Two attempts to sell the steel mill and its associated pipe manufacturer ended without a buyer, even after their combined starting price was reduced from 709 million euros to 463 million euros. The Indian company Jindal Group recently expressed new interest in the plant, but no binding agreement has been reached. Production is still suspended, and employees have reportedly not been paid for several months. Against this background, giveaways can help restore limited operations, but they do not yet represent a complete restart or a long-term solution for the manufacturer.

Hilal KhologluEditor

With over four years of experience in the steel industry and an academic degree in politics and economics from the University of Milan, I work as a market analyst at SteelOrbis. I mainly cover flat and long products, paying special attention to Turkey, Eastern Europe and the Middle East. My work involves analyzing price movements, market sentiment, and changes in supply and demand in these regions.