Liberty Ostrava's Insolvency Raises Concerns for European Steel Industry

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Liberty Steel Ostrava News

GFG Alliance,Steel Manufacturing,Insolvency

Liberty Steel Ostrava, a major steel manufacturing plant in the Czech Republic, faces insolvency and seeks a buyer amidst financial difficulties and uncertainty surrounding carbon emissions allocations.

Via Metal Miner Liberty Steel Ostrava, a steel manufacturing plant in the Czech Republic, recently entered an insolvency process. This comes after its parent company, GFG Alliance, put the plant up for sale and filed for judicial reorganization in mid-June. A source within GFG Alliance told MetalMiner that a regional court in Ostrava, which lies in the eastern Czech Republic’s Moravian-Silesian Region, officially declared the plant insolvent on June 21.

Liberty warned that this could also lead to Ostrava’s insolvency once it surrenders allocations. For now, Liberty will continue to run the Ostrava assets that allow them to cover their own costs. Ostrava’s Future and Steel Manufacturing Capabilities Liberty acquired Ostrava from ArcelorMittal in 2019. This came after the European Commission required that group to divest several of its European plants due to the acquisition of Italian steelmaking group Ilva in 2018.

 

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