Tosyali emerges for Liberty Steel Dudelange facility
The bankrupt Liberty Steel Dudelange facility’s receiver has communicated to trade unions that a decision has been reached on the buyer for the plant, informed sources tell Kallanish.
The prospective buyer is a Turkish steelmaking group that shares the same objective as the Luxembourg government – a commitment to finalise the transaction promptly to facilitate the resumption of production, according to sources.
The buyer could be Tosyali, which was reported last month to be seeking to acquire a European steel producer, citing the challenges faced by EU-based mills reliant on coal-based production. The company’s strategy involves supplying semi-finished products to downstream manufacturers rather than competing directly with final products in the EU market.
Tosyali did not respond to request for comment before deadline on Friday.
The Luxembourg government aims to maximise financial recovery to address Liberty’s outstanding debt, with the government itself among the creditors due to various employee-related expenses incurred by the previous owner. The government maintains ownership of the land and is expected to grant new concession rights to the prospective owner.
The asset will be sold instead of being transferred without compensation. The facility is said to be in good condition, as some personnel have worked to ensure maintenance. The equipment remains up-to-date and production tests have been successfully executed.
Theoretically, after all paperwork is signed, the buyer will be able to quickly resume production thanks to minimal bureaucracy. The selection made by the receiver must undergo validation by the judge responsible for overseeing the sales process. A source indicates this process may require a few days to complete. Following the state’s approval of the judge’s and receiver’s ruling, the facility will be transferred.
Dudelange currently has approximately 140 employees following a reduction in staff. The facility has remained inactive for more than two years, with the exception of a production test conducted in July 2024.
The Luxembourg commerce tribunal declared the Dudelange facility bankrupt last December (see Kallanish 4 December 2024). 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 is currently operational following the procurement of hot rolled coil feedstock, while Liege is said to be on the verge of bankruptcy.
Natalia Capra France , Elina Virchenko UAE
Tosyalı expands investments in Africa and Europe
The chairman of Turkish conglomerate Tosyalı Holding is highlighting trends such as steel overcapacity, consumption disparities, and the impacts of climate change, emphasising the importance of adapting to global economic shifts.
Speaking on the sidelines of the World Economic Forum in Davos, Switzerland, Fuat Tosyalı discussed the company’s expanding investments in Africa, focusing on sustainable energy and local markets. He describes ongoing projects in Turkey, Algeria and Libya aimed at strengthening Tosyalı’s position as the leading steel producer in the Mediterranean, Kallanish understands.
“Because the main rule of sustainability is to have energy first, then the market,” Tosyali tells Bloomberg HT. “We are steel producers. Africa has many underground mines. The issue that concerns us is sustainability. First of all, the energy needed in the process of transitioning from mine to steel, and being able to consume the product produced in the closest geography. We are the strongest steel producer in the Mediterranean basin. On the one hand, we have investments in Turkey, and on the other hand, we have investments planned in Algeria and now in Libya.”
Noting an acquisition made in Spain last year, Tosyalı reveals plans to acquire a new asset in Europe worth approximately $500 million.
“Our steel production capacity has reached a point where we now need to make new investments that will deliver our products to the end consumer,” he comments. “This purchase will be a major investment, potentially reaching approximately $500 million in Europe.”
Tosyalı is also chairman of Turkey’s electric car producer Togg’s board of directors. He states that, after taking over Togg’s management, the leadership decided to increase production rapidly and plan to double production this year compared with last.
Elina Virchenko UAE
Tosyali reiterates commitment to expanding Spain’s Baika Steel Tubular System
Turkish conglomerate Tosyali Holding, which announced the acquisition of Spain’s Baika Steel Tubular System (STS) earlier this year, now rebranded as Tosyalı STS Spain, has reiterated its commitment to expanding the facility, Kallanish notes from the company’s social media statement.
Initially, when announcing the acquisition in January this year, the company stated its aim to increase the production capacity of Tosyali STS Spain from 150,000 tonnes/year to 240,000 t/y through new investments. This expansion was described as a key part of Tosyalı’s strategy to meet rising demand for spiral steel pipes, driven by the growing hydrogen distribution networks in Europe. The acquisition also increases Tosyali’s global pipe production capacity to over 3 million tonnes/year, reinforcing its status as Europe’s largest steel pipe producer, the company claims.
“Spain’s strategic location spans the European, African, and American markets,” said Şerif Tosyali, representing Tosyali’s foreign economic relations board at a meeting with employees, which was also attended by board members Yavuz Tosyalı and Kadir Tosyalı. “Here we will be able to contribute to Europe through our gradually increasing production of high-quality green steel. For us, new investments are the cornerstone of sustainable growth. In line with this approach, we will also make new investments in this plant in Spain. We continue to work towards increasing capacity here to 240,000 tonnes through new investments. With the strength of our plant in Spain, we will now pursue even better projects in the spiral pipe sector,” he added.
STS, located near Vitoria-Gasteiz in Spain, specialises in manufacturing spiral welded steel pipes with various coatings for oil, natural gas, hydrogen, and water transmission lines, as well as structural pipes for civil engineering projects.
Elina Virchenko UAE
