Czechia: Liberty Ostrava's Production Pause Persists

Liberty Ostrava
Liberty OstravaImage Source: Liberty


Amid a conflict with its energy supplier, Liberty Ostrava's 6,000 workers prolong their absence, delaying steel production. The halt, initially set to end, now extends until January 15 due to an unresolved dispute over energy supplies, reports Reuters.



Liberty Ostrava, a prominent Czech steelmaker, faces prolonged production downtime as its 6,000 employees remain on an extended leave due to an ongoing feud with the on-site energy provider, TAMEH Czech.

Originally planned to resume operations on Tuesday after a pause initiated last month, the workers will continue their hiatus until at least January 15, confirmed by a Liberty spokesperson.

The dispute stemmed from TAMEH Czech's suspension of electricity, heat, and industrial gas supplies to Liberty on December 21, citing non-payment and declaring insolvency.

Liberty, operating in Ostrava with an annual capacity of 3.6 million metric tons of steel, emphasizes that the revival of operations hinges on a resolution with TAMEH Czech, as per its restructuring plan.

The steel mill, a part of the Liberty Steel group under the ownership of commodities magnate Sanjeev Gupta, ceased its last operating blast furnace in October amid challenges in the European steel market.

Liberty's acquisition of the steel mill in 2019 from ArcelorMittal, prompted by regulatory requirements, now faces complications linked to ArcelorMittal's indirect involvement in TAMEH Czech through TAMEH Holding, jointly owned with Poland's Tauron. Recent reports denied ArcelorMittal's acquisition of Tauron's stake.

Adding to the complexity, a regional court in Ostrava declared a three-month moratorium on all Liberty Ostrava debt repayments on December 21, appointing a restructuring trustee.


Liberty Ostrava's extended shutdown underscores the implications of unresolved conflicts between steelmakers and energy suppliers, affecting thousands of workers and the regional steel industry. The impasse highlights the intricate relationships in the steel market and the challenges faced amid disputes between major stakeholders.

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