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| Liberty Galați |
Blast Furnace No. 5 restarts as Romania’s largest mill targets operational recovery
Romania’s largest integrated iron and steel works, Liberty Galați, has resumed operations after nearly a year-long production halt. The restart began with the reactivation of Blast Furnace No. 5, as announced on the company’s website on June 4. Liberty Galați is part of the global Liberty Steel Group.
The resumption follows efforts to optimize raw material costs and restore disrupted supply chains. The first batch of liquid iron was scheduled for June 5, with steel production set to begin within three to four days. Casting operations are expected between June 9–15, to be followed by the reactivation of rolling mills for plate, galvanized and organic-coated coil, and pipe production.
Support from Exim Banca Romaneasca and government authorities played a key role in enabling the restart. Radu Ionescu, general manager of the steelworks, expressed gratitude to restructuring experts from Euro Insol and Sierra Quadrant, who are overseeing Liberty Galați’s turnaround and safeguarding its role as a strategic asset for Romania and the Galați community.
Initial production is forecast at 3,800 metric tons per day of liquid iron, equivalent to 4,300 mt/day of steel, with a gradual ramp-up to 5,500 mt/day of liquid iron, or 6,500 mt/day of steel, which represents the company’s break-even point.
Debt Restructuring, Strategic Industries, and Energy Plan in Focus
In parallel with production restart, Liberty Galați continues negotiations with over 1,200 creditors to secure approval for a court-supervised restructuring plan, expected to be validated by the Galați Court by July 5. The plan includes achieving positive EBITDA within two years, targeting orders in defense, infrastructure, construction, and shipbuilding, and improving operational cost efficiency.
The company also aims to preserve Romanian industrial value, monetize non-core assets, and secure new funding. Euro Insol president Remus Borza emphasized that these efforts are critical to restoring the mill’s competitiveness.
A significant focus of the strategy is energy. “Our business plan includes … a strong energy strategy, considering that energy prices have been the main challenge for steel companies in Romania,” Ionescu said, highlighting the lack of subsidies compared to other European producers.
In March, the Galați Court initiated a court-supervised procedure to prevent the mill’s insolvency. Euro Insol and Sierra Quadrant were appointed administrators to guide the restructuring process.
Market fundamentals appear to be stabilizing. EU trade measures and the rollout of the Carbon Border Adjustment Mechanism (CBAM) are expected to support European steelmakers, alongside anticipated demand from Ukraine’s reconstruction and the EU’s defense sector expansion. Liberty Galați’s management expects to benefit from these shifts in regional demand.
With a nameplate capacity of 3 million mt/year, Liberty Galați remains Romania’s top steel producer. Its highest output in the last decade—2.35 million mt of steel—was achieved in 2021.
Meanwhile, market pricing has softened. Platts, part of S&P Global Commodity Insights, assessed European domestic plate prices at €685/mt EXW Ruhr and €625/mt EXW Italy, down €15 on the week and €35 from mid-April highs amid sluggish demand and growing competition. Prices now hover just €10 above early January levels.
ScrapInsight Editorial Commentary
The restart of Liberty Galați marks a critical moment not just for Romania’s steel sector but also for broader European scrap dynamics. As the plant ramps up to full output, regional demand for ferrous scrap is expected to rise steadily, particularly for high-grade input as blast furnace operations stabilize. This could provide upward pressure on scrap pricing in Southeast Europe, especially amid tightening EU trade restrictions and the enforcement of CBAM. Moreover, Liberty’s focus on restructuring and energy cost optimization echoes a wider trend among European mills pushing toward cost-effective, circular production models. If Liberty meets its break-even and EBITDA targets, it could become a bellwether for post-insolvency recovery across the bloc’s aging steel infrastructure.
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