On March 4, Radu Ionescu, the General Manager of Liberty Galati, a significant Romanian steel producer, announced the activation of a preventive process that should help secure the long-term existence of the company. This move is meant to safeguard the business’s future and allow the re-launching of its operations in Galati.

Ionescu clarified that difficult market conditions, such as the conflict in Ukraine, high energy prices, and the influx of low-cost steel imports into the European Union pushed the motivation to start this process. Additionally, the imposition of new U.S. tariffs and the absence of adequate EU countermeasures have aggravated the situation. The process will enable Liberty Galati to focus its financial resources on restarting production and ramping up output to profitable and sustainable levels.

Liberty Galati is now one of the biggest steel producers in Romania, with a yearly capacity of 3 million metric tons. The firm also produces high-value steel, which is critical for infrastructure growth in Romania and Europe. The firm is also well-placed to support Ukraine’s reconstruction activity, which will increase in the future.

Despite the strains imposed by increasing energy prices and an influx of steel imports from non-EU countries, Liberty Galati is optimistic that the proposed actions will enable it to ride out these difficult market conditions while enhancing agility and competitiveness in the future.