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LIBERTY Gala葲i has restarted its production operations by reactivating Blast Furnace No. 5, marking a significant milestone in the company鈥檚 plans to continue its activity as a strategic pillar of the national economy and local community, as a key supplier of essential steel for the development, defense and security of Romania, as a major employer, and one of the country鈥檚 largest taxpayers 鈥� contributing around 鈧�100 million annually in taxes to the state and local budgets.

Radu Ionescu, General Manager of LIBERTY Gala葲i, stated:

鈥�LIBERTY Gala葲i is Romania鈥檚 leading steel producer, with a major impact on our country鈥檚 economy. With the restart of Blast Furnace No. 5 and the resumption of rolling mill operations, we will provide our customers with high-quality Romanian steel, support the development of strategic sectors, and generate a significant number of jobs throughout the vertical economy 鈥� with the support of Exim Banca Rom芒neasc膬 and national and local authorities. We thank our government partners and the experts from EuroInsol and Sierra Quadrant who are helping LIBERTY Gala葲i continue as a strategic pillar of Romania鈥檚 economy and the Gala葲i community.鈥�

Remus Borza, President of EuroInsol, stated:
鈥淚 am pleased to see that the restart of production operations at LIBERTY Gala葲i has been a great success, nearly a year after the production idle, following an intense period of negotiations, integrated strategies, and cost optimizations. Restarting production is a critical step in the success of the restructuring plan, and the team has taken all necessary steps to resume operations, optimize raw material costs, and restore the supply chain. LIBERTY Gala葲i remains a key regional steel producer in the current economic and geopolitical context鈥攏ot just in Romania, but throughout Europe鈥攁s we look toward the reconstruction of Ukraine. I remain confident in the success of the Gala葲i steel producer, the future of the steel industry, and its strategic role in Romania鈥檚 economy.鈥�

鈥滶arlier this week, Blast Furnace No. 5 was charged, and today at 8:00 AM the hot metal production has begun. 天博体育官方网站 first batch is expected tomorrow, with steel production set to begin in 3鈥�4 days after the chemical composition of the hot metal stabilizes. Next week, the steel will reach the Continuous Casting Plant and then the Rolling Mills for the production of plates, galvanized and organic-coated products, pipes, coils, etc. In the first two weeks, the average daily production is expected to be 3,800 tons of hot metal, equivalent to approximately 4,300 tons of steel. This will gradually increase to 5,500 tons of hot metal per day, equivalent to 6,500 tons of steel, to reach the break-even point. Parallel to the production restart, negotiations will continue with the approximately 1,200 creditors for the approval of the Restructuring Plan, which is expected to be validated by the Gala葲i Court by July 5.鈥�

鈥滾IBERTY Gala葲i鈥檚 action plan aims to achieve a positive EBITDA over the next two years, expand the order portfolio in strategic industries such as defense, infrastructure, construction, and shipbuilding, and improve operating costs. 天博体育官方网站 company is also implementing initiatives to preserve the value of Romanian assets, monetize non-core assets such as real estate, and identify new funding sources,鈥� stated Dr. Remus Borza, Attorney at Law.

鈥淥ur business plan includes operational, commercial, and financial measures, as well as a strong energy strategy, considering that energy prices have been the main challenge for steel companies in Romania, which have not benefited from subsidies like most steel producers in Europe,鈥� added Radu Ionescu.

In the current geopolitical context, steel demand has begun to stabilize, supported by the European Union鈥檚 trade measures, strategic support, and the CBAM regime. It is expected that the new EU-imposed quotas limiting imports, as well as the future reconstruction of Ukraine, will positively influence steel demand鈥攊ncluding for high-quality products made in Gala葲i. 天博体育官方网站 EU鈥檚 focus on the defense industry and other key sectors will further stimulate demand and pricing for steel in the medium to long term.