Liberty Steel, a prominent global steel producer, is making significant strides to revitalize the Częstochowa steel plant in Poland by proposing to lease the facility through its subsidiary, Poviglio. This proposal comes at a critical time, as the Częstochowa plant is currently undergoing bankruptcy proceedings. Liberty Steel's plan includes immediate financial resources aimed at repaying debts and ensuring that employees receive their wages for September.
In September 2024, the bankruptcy process for the Częstochowa plant resumed after a brief pause. Liberty Steel's offer not only seeks to lease the plant but also aims to appeal the ongoing bankruptcy proceedings. Recently, the creditors of Częstochowa approved a restructuring plan proposed by Liberty Steel, which now awaits a court's decision on whether to ratify the plan or seek a new tenant for the facility.
A representative for Liberty Steel emphasized the importance of this leasing arrangement, stating that it would help preserve the value of the company’s assets while preventing any deterioration of the creditors’ situation. They further claimed to be the only potential tenant with a deep understanding of the complexities involved in maintaining the facility, especially with winter approaching.
The management of the Częstochowa plant will transition to a new team led by Tomasz Senk, featuring Polish specialists with extensive experience in restructuring. This new team is optimistic about the plant's recovery, noting its unique position as the sole manufacturer of thick rolled steel using an electric arc furnace with low carbon emissions in the European Union. They believe that, following a responsible recovery process, there are significant growth opportunities for sales.
Thomas Gangl, CEO of Liberty Steel Europe, expressed hope that the plant's administrator will approve their leasing proposal promptly, allowing operations to resume before winter. This urgency reflects the critical need to protect the facility's infrastructure and capabilities.
Since the commencement of bankruptcy proceedings in July, the interim administration of the Częstochowa plant has actively sought a new tenant. The plant's production was halted last year when Liberty Steel acquired the former ISD Huta Częstochowa, which was previously owned by the Corporation "Industrial Union of Donbass" for approximately 190 million zlotys.
