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.
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