Liberty Galati has restarted pig iron production at blast furnace no.5, after an almost year-long stoppage, with liquid steel output to begin by the weekend and then continuous casting and rolling next week, Kallanish notes.
In the first two weeks, average daily production is expected to be 3,800 tonnes of hot metal, equivalent to approximately 4,300 t/day of steel. This will gradually increase to 5,500 t/d of hot metal, equivalent to 6,500 t/d of steel, to reach the break-even point, Galati says.
Parallel to the production restart, negotiations continue with Liberty Galati’s approximately 1,200 creditors for the approval of the steelworks’ restructuring plan, which is expected to be validated by the Galati Court by 5 July.
Galati’s action plan “aims to achieve a positive Ebitda over the next two years, expand the order portfolio in strategic industries such as defence, infrastructure, construction, and shipbuilding, and improve operating costs. The company is also implementing initiatives to preserve the value of Romanian assets, monetise non-core assets such as real estate, and identify new funding sources,” says Remus Borza, president at EuroInsol, the insolvency advisors working with Galati on its restructuring process.
“Steel demand has begun to stabilise, supported by the European Union’s trade measures, strategic support, and the CBAM regime,” Liberty Galati notes. “It is expected that the new EU-imposed quotas limiting imports, as well as the future reconstruction of Ukraine, will positively influence steel demand – including for high-quality products made in Galati. The EU’s focus on the defence industry and other key sectors will further stimulate demand and pricing for steel in the medium to long term.”
The steelmaker signed an agreement with the Romanian government in March to secure a €350 million ($377m) working capital loan from Romania’s Exim Bank to finance raw materials supply. It initially set a deadline of 22 April for the production restart.
Adam Smith Poland
