Liberty Ostrava, which has an annual steel production capacity of 3.6 million tonnes, said it will close blast furnace No. 3, the only furnace in operation, and will carry out repairs and maintenance during this time.
The company, owned by Liberty Steel's main partner, commodity tycoon Sanjeev Gupta, will maintain employment and orders during the shutdown.
Related rolling mills will continue to operate, it added.
Unions at the mill are concerned about the situation and are calling on the company and government officials to meet to clarify the financial situation and future plans, local media reported.
Liberty Steel said it plans to invest in the coming years to transform the company into a carbon-neutral steel producer.
Demand for steel in the European Union is expected to fall by 3 per cent this year due to continued high energy prices, the European Steel Association (Eurofer) said in July.
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