Liberty Galati's Production Restart FacesContinued Delays
Despite multiple announcements and preparations, Romaniansteelmaker Liberty Galati has failed to restart production at its blast furnaceNo. 5, which was initially scheduled to resume operations on April 22 followingthe Easter holidays. The plant's only working blast furnace has now been idlefor approximately ten months, creating mounting concerns about the company'sfinancial stability and future operations. Industry experts note that eachpostponement further complicates the technical challenges of restarting themassive industrial facility
Technical Hurdles and Resource Shortages ImpedeProgress
According to market reports, the newly announced restartdate of May 9 faces significant skepticism from industry observers. The delaysstem from a combination of technical issues with the blast furnace equipmentand insufficient raw material reserves needed to sustain operations onceproduction begins. These challenges have created a cycle of announced deadlinesfollowed by inevitable postponements, frustrating workers, suppliers, andcustomers alike. Liberty Galati's management has provided limited details aboutthe specific technical problems they're encountering
Government Support Offers Lifeline AmidFinancial Turbulence
In March 2025, Liberty Galati received a crucial financiallifeline when Romanian authorities approved state aid to help the strugglingsteelmaker restart operations. According to Romanian Minister of Economy BogdanIvan, the government considers the plant strategically important for providingraw materials to defense industry facilities across the country, includingthose in Brasov, Cuzhiru, Sad, and Dragomirteş. This support came shortly afterthe company entered pre-insolvency procedures on March 5, which providedtemporary protection from creditors while the company develops a restructuringplan.
Leadership Changes Signal Restructuring Efforts
As part of its strategy to restart operations, LibertyGalati appointed Cornel Moisescu as Head of Primary earlier in April. In thisrole, Moisescu is responsible for coordinating several critical departments,including the Sinter Plant, Blast Furnace, Continuous Casting, and SteelShop.At the time of his appointment, Moisescu acknowledged the challenging marketconditions, comparing them to the financial crisis of 2008 and the steelindustry crisis of 2015, but expressed determination to meet "the steel needsof Romania's strategic industries." This leadership change represented akey component of the company's efforts to stabilize operations
Worker Concerns Mount as Uncertainty Persists
While Liberty Galati's spokesperson assured local medialast week that steelworkers' salaries have been paid, the prolonged productionshutdown has created significant anxiety among the company's workforce ofapproximately 4,500 employees. Previous reports indicated delays in salarypayments during the plant's extended idle period. The uncertainty surroundingthe restart timeline has left many workers concerned about their long-termemployment prospects, particularly as each postponed deadline raises questionsabout the company's ability to overcome its technical and financial challenges.
Key Takeaways:
• Liberty Galati has repeatedly postponed the restart ofblast furnace No. 5, with the latest target date set for May 9, though industryexperts express skepticism about meeting this deadline due to persistenttechnical problems and insufficient raw material reserves.
• The Romanian government provided financial support toLiberty Galati in March 2025, recognizing the plant's strategic importance insupplying raw materials to defense industry facilities, shortly after thecompany entered pre-insolvency procedures for protection from creditors.
• Liberty Galati's struggles reflect broader challenges inthe European steel industry, including impacts from the Ukraine war, highenergy prices, steel imports flooding the EU market, and new 25% U.S. tariffson steel imports implemented in March 2025
