Potential buyer found for Liberty Steel in Dudelange

Production at the Liberty Steel plant in Dudelange could soon resume again, with prospective buyers, among them Turkey’s largest steel company, reportedly expressing an interest in the site.

Trade union representatives confirmed toVirgule and Luxemburger Wort – sister publications of the Luxembourg Times – on Thursday that a buyer has been found for the plant.

However, unions stressed that a final deal is yet to be agreed, and that more details are expected next week.

Interested parties had until 14 February to submit their offer to purchase the plant.

The official announcement is now in the hands of the insolvency administrator.

However, the deputy general secretary of the LCGB union, Robert Fornieri, told Virgule: “According to my information, a declaration of registration has been submitted by the Turkish group Tosyali Holding.”

According to the LCGB representative, numerous buyers expressed interest in taking over the plant. In the end, two candidates remained, including the Turkish group.

Tosyali has been active for 70 years. The company says it has almost 40 plants and around 15,000 employees on three continents. Tosyali produces almost ten million tonnes of steel and iron every year, making it the largest steel producer in Turkey.

What happens next

The Ministry of the Economy must give its green light for the deal to go ahead, as the plant belongs to the state.

“It will also be possible for us to meet and discuss with them from this point onwards and negotiate accompanying social measures and the transition to a plan to maintain employment,” said Fornieri.

The sale process and transfer will still take some time from an administrative point of view, Fornieri says – estimating a possible likely timeframe of mid-April. In this context, the LCGB favours a “plan to maintain employment in order to create a transition to the resumption of activity”.

“We also need to know the business plan of this new player. All of this needs to be discussed. We don’t currently know the details of their project or investment plan,” added Fornieri.

The steelworks in Dudelange, formerly owned by ArcelorMittal, has been closed for several years.

Around 140 people are still employed at the site, although Liberty Steel filed for insolvency proceedings at the end of last year, after a period of several months in which wages were frequently paid overdue.

According to Fornieri, employees are relieved at finally receiving a positive signal with the announcement of a takeover bid. They had been mired in uncertainty for months, even before the plant went bankrupt.

(This story was originally published by the Luxemburger Wort. Translation and editing by Alex Stevensson)