Romanian steelmaker Liberty Galați will suspend operations for a month from November 1 and place most of its roughly 2,200 employees on technical unemployment. The measure will also affect staff at Liberty Tubular Products; some workers will remain to handle maintenance, security and equipment preservation.
Local media reported that, in a notice dated October 29, management cited serious financial and operational difficulties, including problems with electricity supplies and employee transport. The exact number affected has not been specified, as departments are still determining staffing for essential operations.
Employees reportedly have not been paid since May. On October 30, about 300 workers protested outside the Galați Prefecture, demanding overdue wages, access to the wage guarantee fund and faster progress on the plant’s sale.
In an open letter in late October, management warned that the company lacked funds to pay employees and suppliers and to maintain electricity supplies and essential operations. The executive team offered to resign. A power cutoff was averted after supplier Electrica Furnizare agreed to continue supplying electricity for a limited period. The company had warned that a disconnection could damage industrial equipment and complicate a restart. The firm transporting employees to the plant has also terminated its contract.
The restructuring and sale plan has not been approved. A meeting of Romania’s interministerial government committee scheduled for October 30 to discuss the plan was cancelled. According to local media, the revised proposal sets a minimum sale price of €200 million, requires the investor to pay in full and commits the buyer to restarting production.
The plant’s estimated liquidation value was lowered to €182 million in October. Earlier auction attempts, with starting prices of €709 million and €463 million, failed. Liberty Galați has annual capacity of up to 3 million tonnes of steel and supplies construction, infrastructure, automotive, shipbuilding, energy and defence industries.
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