Acquisitions to end Liberty Steel era at two EU sites 

Acquisition offers for Liberty Steel’s Dudelange (Luxembourg) and Ostrava (Czechia) operations appear likely to end a prolonged period of uncertainty about their future.

A consortium of companies – SPV NH Ostrava and SPV NH Koksovna – has agreed to acquire the main plant and coking facility of the bankrupt Liberty Ostrava plant for CZK3.01 billion (EUR122.6bn). Luxembourg’s government, meanwhile, has made an offer to liquidators for Liberty Steel Dudelange. 

MEPS International steel market analyst, Chris Jackson, said that certainty over the future of Ostrava would provide a “timely boost” for long product buyers in Central Europe and further afield. He said: “Ostrava was Czechia’s largest steel producer and crude steel production fell significantly when it ceased operations.  

“It is likely that the site will continue to operate with a reduced workforce, compared with that seen at the height of its productivity, but its success is key to the local economy.”   

The consortium set to acquire the Ostrava site plans to continue its production of long steel products. Liberty Steel restarted production at the facility last autumn, ahead of attempts to sell the site, which began in February. At full capacity, Ostrava will produce 3.6m tonnes of steel per year, employing around 6,000 people. Its acquisition has to be approved by the insolvency court and Czechia’s Office for the Protection of Competition (ÚOHS). 

Plans to add value to Dudelange site 

In contrast, the site of the bankrupt galvanising facility and service centre at Dudelange would be cleared to make way for new enterprises offering “high value-added jobs” under plans revealed by Luxembourg’s government. The 16-hectare site had been idle for three years. In May, Turkey’s Tosyali Holding abandoned its interest in buying the facility citing the effect of revisions to the EU’s import safeguard measures. 

The acquisition of Ostrava would provide optimism about the future of another former Liberty Steel facility following the Polish Ministry of Defence’s bid for Huta Czestochowa. The completion of that transaction moved a step closer after a Polish court agreed the site’s PLN253.8m valuation earlier this month. 

Central European respondents to MEPS research for its International Steel Review say that production volumes have been maintained below Huta Czestochowa’s potential output since it restarted in January. Nonetheless, the facility, currently operated by state-owned coking coal exporter Weglokoks, has been offering plate with short delivery lead times.   

Jackson recognised that production had restarted at a time of low demand in Central Europe, however. July’s International Steel Review showed hot rolled coil prices down by 8.2-8.6% month-on-month, with plate prices down by 2.2-2.7%.  

Czestochowa restart considered “a success” 

“The re-emergence of the Huta Czestochowa facility has been deemed a success, by Central European plate buyers, in the main”, said Jackson.  

“Czestochowa has the capability to produce specialised heavy plates for the defence industry, a vital consideration amid regional uncertainty. However, it is reported that the plant’s operators have concentrated on the supply of commercial plate in its ramp-up phase.   

“The EAF facility has been able to restore its standing in the domestic market, as well as increasing its presence in selected export markets, such as in the Baltic countries.”  

A number of European steelmaking sites operated by Liberty Steel, part of the GFG Alliance, are currently battling to remain operational amid financial issues. In June, Liberty Galati restarted production after a pause of almost a year. Efforts are currently underway to form a restructuring plan to secure the future of the facility, which is Romania’s largest integrated steel mill, with annual production capacity of around 2.5 million tonnes. 

In Hungary, the assets of Liberty Dunaferr have been reorganised ahead of a potential sale. Meanwhile, no offers have been received for Liberty Liège, which was declared bankrupt in April 2025.