The Luxembourg government has submitted an acquisition offer to the court-appointed liquidator for bankrupt galvanizer and service centre Liberty Steel Dudelange. It aims to repurpose the site for another use and not resume steel operations.
According to Luxembourg’s Ministry of Economy, following nearly three years of production stoppage, the site presents a strategic opportunity for redevelopment. The objective, according to a ministry note obtained by Kallanish, is to optimise land use and repurpose the facility to support industrial renewal and drive economic growth.
“If this offer is accepted, the Ministry of the Economy will proceed with the development of the land with the aim of establishing new industrial activities and promoting the creation of high value-added jobs. The government will also consider the possibility of dedicating part of the site to defence-related projects,” the note says.
No other buyers have emerged for the Dudelange site, nor for Liberty Steel’s Liège facility. Despite ongoing efforts to identify potential investors, both sites remain without viable acquisition prospects, largely due to structural challenges in the European steel market and restrictive trade conditions.
In May, the sales process for the Dudelange plant was suspended after rumoured bidder Tosyali reportedly withdrew its interest. A recent visit by another potential buyer reportedly took place at the Dudelange site, though the interested party is also said to be based outside the EU.
The EU quota system is a major obstacle to any acquisition of both the Dudelange and Liège sites. The fundamental issue lies in its restricted ability to import hot rolled coil feedstock from outside the EU, which significantly undermines the site’s competitiveness and operational viability.
Natalia Capra France
