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Liberty Steel adjusts strategy at Galati plant

Liberty Steel has taken the decision to temporarily shut down its blast furnace in Galati, Romania due to challenging markets.

Liberty Steel adjusts strategy at Galati plant

Liberty Steel has decided to temporarily shut down its blast furnace in Galati, Romania, due to volatile markets. The company said that during the period, it will carry out maintenance and maintenance work at the plant, aiming to improve the performance and reliability of the furnace, while it will continue to operate its downstream facilities from existing plate stocks in order to maintain production.

The Galati steel mill has the capacity to produce 3.5 million tons of hot rolled coil, 1 million tons of cold rolled coil and 1.2 million tons of steel plate per year, but has been operating at low rates recently, with only one of the five blast furnaces remaining active. During the temporary shutdown, Liberty Galati plans to focus on consolidating its order book for customers and focusing on profitable market segments, the company stated.

It was reported that the company's Ostrava plant in the Czech Republic was experiencing similar difficulties. Blast furnaces 2 and 3 in Ostrava are idle due to disputes with energy supplier Tameh Czech. At the Dunaferr steel mill in Hungary, rolling lines have restarted, but hot steel operations are still at a standstill. Dunaferr's monthly production is estimated at around 10,000-15,000 tons, using Russian plates to supply its rolling lines.

Liberty Steel has not announced an exact timetable for the shutdown of equipment at the Galati plant, but aims to improve the performance of the furnace and ensure sustainable production during the temporary shutdown. At the same time, the company plans to implement similar strategies at its plants in the Czech Republic and Hungary, the company added.

Strategic steps in Central Europe are seen as part of the company's efforts to adapt to challenging market conditions and achieve its sustainable production goals, while uncertainties and low demand in the European steel market have increased the company's challenges in optimizing costs and making its operations sustainable.

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