Dudelange, Liège face closure; EU quotas deter buyers

Liberty Steel’s Dudelange and Liège facilities appear headed for permanent closure, with no buyers emerging more than two years after operations ceased. Informed sources tell Kallanish that hopes of reviving the sites are fading, largely due to the constraints of the EU’s steel import quota system, which continues to deter potential non-European investors.

In May, the sales process for the Dudelange plant was suspended after rumoured bidder Tosyali reportedly withdrew its interest. A recent visit by a potential buyer reportedly took place at the Dudelange site, though the interested party is said to be based outside the EU.

“The core issue is the difficulty of importing hot rolled coil from outside the EU,” one source explains. “The EU quota system is preventing any viable acquisition of both Dudelange and Liège. As long as these trade protections remain in place, the sites are unlikely to restart.”

A union source adds that the Luxembourg government has engaged in discussions with EU authorities in an effort to find a solution, but no progress has been made. In July, a “job day” event was organised in Luxembourg to help redirect former Dudelange workers towards new employment opportunities. “Liège and Dudelange are now in a state of abandonment,” the source concludes. “Trees are beginning to grow where production used to take place.”

ArcelorMittal Belgium has meanwhile confirmed the acquisition of a portion of the former Liberty Steel Liège facility, specifically one galvanising line located in Flémalle, Wallonia. The purchase offer was accepted by the court-appointed trustees following the going into administration of owner Liberty Galati.

The agreement covers the full takeover of operations in Flémalle, including the Galva 5 hot-dip galvanising line, CEPI (repair) lines, and a water treatment plant. The Galva 5 line produces zinc-coated steel products primarily for the automotive and construction industries.

ArcelorMittal Belgium plans to restart the galvanising line in 2026, following approximately nine months of maintenance and investment work needed to restore the facility to operational standards.

“The galvanising line in Flemalle will allow us to expand our ability to manufacture a high added-value product for our automotive and construction customers across Europe. We look forward to working with the skilled team in Flémalle and to restoring the plant to operating at a world-class level,” ArcelorMittal Belgium chief executive Frederik Van De Velde says in a company note obtained by Kallanish.

In December, the Luxembourg commerce tribunal declared the Dudelange facility bankrupt. In addition to Dudelange, Liberty plans to divest its Magona facility in Italy and its Belgium-based Liege plant. The three businesses combined possess rolling capacity exceeding 2.5 million tonnes/year. The Magona facility remains operational but is running at below half of its production capacity.

Natalia Capra France

kallanish.com