The process to restart LIBERTY Galati’s Blast Furnace No. 5 is now underway and expected to be completed in the next few days.

The restart comes amid challenging market conditions for steel producers in Europe which LIBERTY is adapting to by adjusting its product mix and production schedules, reducing its cost base and working with government to bridge energy price differentials experienced across Europe.

These actions combined with the ongoing support and cooperation of LIBERTY’s customers, suppliers and stakeholders, will help to ensure the restart is sustained and the Galati plant remains competitive through market cycles and as its transitions to lower carbon technologies and energy sources.

Prasanta Mishra, Managing Director Plant Operations of LIBERTY Galati, said: “The restart is good news for Galati but we must continue to focus on each part of our plant’s production costs to sustain moment, and ensure we serve our customers with high quality, competitive Romanian steel products.  Our renewed focus on cost competitive semi finished products is yielding results, helping us to increase downstream capacity utilisation, and improve cash flows which will start to improve trade payables over the next few months. We continue to work with government on solutions to bridge energy cost differentials, which now make up nearly 40 per cent of the variable cost per tonne of steel produced, compared with just 8 per cent in 2019. We’re grateful for the support of our partners as we navigate these challenging market conditions.”

Notes on Energy Prices 

• LIBERTY Galati is currently the second largest energy user in Romania, so energy price rises have a huge impact on our variable costs – increasing to almost 40% per tonne of steel today from 8% in 2019.
• Galati has also seen other costs, such as raw materials and other services, rise by up to 200% in some instances since 2019.
• Carbon taxes now cost LIBERTY Galatia around 150 EUR for each tonne of steel we produce.
• LIBERTY Galati is competing with companies from other EU countries whose governments are shielding them from energy policy costs that make up a substantial part of the total price. This makes it hard for Romania-made steel to compete in its domestic market. Its markets are also experiencing historically high levels of imports from countries outside the EU which do not pay carbon taxes and also provide energy subsidies to their operators.
• We are seeking to work with government to implement an energy policy for energy intensive users that levels the playing field and ensures Romanian industry competes domestically and across Europe.