The proposal was submitted on September 23, outlines a plan to relaunch steelmaking operations at the Galati steelworks on the west bank of the River Danube, in southeastern Romania, under a tolling model, ensuring continuity of supply and safeguarding thousands of jobs connected to the site, according to Steel Mont.
The Galati steelworks has five blast furnaces with a combined capacity of more than 6 million tonnes per year of pig iron. The mill is also able to produce 3.5 million tpy of hot-rolled coil, 1 million tpy of cold-rolled coil, 1.2 million tpy of steel plate and 350,000 tpy of hot-dipped galvanized (HDG) coil, Fastmarkets data shows.
The Liberty Galati plant is the largest integrated steel producer in Romania and one of the key industrial assets in southeastern Europe. Operations at the site have been severely curtailed since parent company Liberty Steel’s financial difficulties and production interruptions in recent years, with an attempt to restart crude steel production in June failing due to technical issues.
According to Steel Mont, which has its headquarters in Dusseldorf, Germany, the consortium’s proposal includes raw material supplies, tolling operations and the off-take of finished products, with an option for a potential acquisition of the plant in the future.
“We can confirm that the consortium has expressed its strong interest in supporting Liberty Galați’s restart,” Steel Mont founder and chief executive officer Rajesh Saraiya said. “This initiative is designed to safeguard jobs, secure supply chains, and ensure that Romania retains its strategic steelmaking capacity within the European Union.”
A Steel Mont representative told Fastmarkets on October 7 that the other participants in the consortium could not be revealed yet.
The administrators of Liberty Galati are currently reviewing the proposal, Fastmarkets understands.
Liberty Steel declined to comment on the matter when contacted by Fastmarkets on October 6.
Steel Mont has been operating for more than 10 years, trading in finished and semi-finished steel, minerals and steelmaking raw materials.
The proposal comes after a major development in August 2025: the restructuring plan for Liberty Galați was approved by a majority of creditors and confirmed by the Galați Tribunal.
The approved plan outlines debt repayments to secured and unsecured creditors, full payment of wage claims and a strategic refocusing on the domestic Romanian market, alongside cost optimization measures and streamlined local governance, according to Liberty Steel.
The vote involved approximately 1,200 creditors. The plan was accepted by more than half, with about 52% in favour, while 20% opposed, allowing it to pass under insolvency rules in Romania.
