Liberty Galati, Romania's biggest steel mill, has announced plans to restart its Blast Furnace No.5 following a short stoppage, driven by robust demand for its plate and coated products. 

The furnace, the only one still operational on the industrial site, was turned off in early June due to adverse market conditions. The furnace's production has also been temporarily suspended several times in recent years. 

The restart, scheduled to commence in the coming days, was discussed in a recent meeting between Liberty Steel Group Executive Chairman Sanjeev Gupta and Romanian Deputy Prime Minister Marian Neacsu in Bucharest. The meeting covered the restart plans aimed at serving local customers in infrastructure and shipbuilding, as well as Liberty's investment plans for green steel in Romania. 

The company sought government support concerning CO2 certificate allocation and incentives for energy-intensive consumers. 

Deputy Prime Minister Neacsu emphasized the steel mill's significance to the Romanian economy and the necessity for ongoing decarbonization investments and assured that the Government would collaborate with Liberty Galati to facilitate the furnace restart. 

Ajay Aggarwal, Chairman of the Board at Liberty Galati, expressed optimism following the meeting, highlighting the essential role of Galati in producing steel for critical infrastructure and providing quality employment. He stated, "The last twelve months have been extremely challenging for the steel industry across Europe, but we're encouraged by the support we've been shown by the Romanian Government." 

The restart of Blast Furnace No.5 will leverage Liberty Galati's strengths in supplying plate and coated products, contributing to critical infrastructure projects in Romania and Europe. This move positions the business for market recovery and stability amidst broader industry challenges. 

In 2023, Liberty Galati halved its turnover to RON 3.65 bln (EUR 735 mln) and posted losses of RON 2.25 bln (EUR 452 mln), according to official data from the Finance Ministry.

andrei@romania-insider.com

(Photo source: the company)