“In the context of the bankruptcy of Liberty Steel Dudelange, the Government Council has decided to submit an offer to the trustee to acquire the site,” the Ministry of Economy said in a press release.
“After almost three years of inactivity, the site can be redeveloped in a way that maximizes the use of available space and finally gives it a new purpose to contribute to economic development,” the ministry added.
In 2019, Liberty Steel acquired the Dudelange site, along with several other European steel assets, from ArcelorMittal. Almost all of those acquisitions have faced insolvency or closure in recent years.
The plant in Dudelange is capable of producing around 1 million tonnes per year of galvanized products from both electro-galvanizing and hot-dipped galvanizing lines, according to Fastmarkets’ information. There are two hot-dipped galvanizing lines with combined capacity for 620,000 tpy and two electro galvanizing lines with combined capacity for 360,000 tpy, according to Liberty Steel’s website.
There are 185 workers employed at the Dudelange plant, which lies in the south of Luxembourg, which itself is between France, Belgium and Germany.
The asset was part of Liberty Steel Belgium, along with Liberty Liège, which comprises the Flémalle and Tilleur production sites in Belgium, each producing cold-rolled coil, hot-dipped galvanized coil and tinplate.
In December 2024, the Dudelange plant was declared insolvent and a receiver was appointed, while the Belgian assets entered a process of liquidation.
Liberty Steel’s attempts to organize a reacquisition faltered. Then, in February this year, Turkey’s Tosyali Steel submitted an offer for the potential acquisition of the Dudelange plant, but Fastmarkets understands that the deal did not progress beyond that initial stage.
“If this offer is accepted, the Ministry of Economy will develop the land with a view to developing new industrial activities and promoting the creation of high-value jobs. The government will also examine the possibility of dedicating part of the site to defense-related projects,” the Ministry of Economy said.
Because no other potential buyer has emerged, industry sources familiar with the matter said that the chances were high that the Dudelange site would be nationalized.
Galvanized coil is mainly used in the automotive and construction industries. But these products are also used in the military industry, mainly for their corrosion resistance and durability in extreme conditions. Applications include structural elements, vehicle components and essential parts such as chains and anchors for landing craft.
