Liberty Galati Continuing Normal Operations
Ziarul Financiar reported that Romania's biggest steel producer Liberty Galati, former Sidex Galati, says its operations are not yet touched by the credit
Ziarul Financiar reported that Romania's biggest steel producer Liberty Galati, former Sidex Galati, says its operations are not yet touched by the credit crunch faced by its owner GFG Alliance in the insolvency of the Greensill investment fund, the group's main investor and the Galati plant, is a challenge. Liberty Galati told “Although Greensill's difficulties have created a challenging situation, we have the funds to meet our current needs. Through our effort to have a global efficiency, we have improved the profit margins of our operations, most of the main activities generating positive cash flows. The GFG Alliance as a whole is operationally strong. We currently benefit from the highest steel prices in the last 13 years, as well as strong markets for aluminum and iron ore.”
However, Romania's Economy Ministry says that it is monitoring the situation at Liberty Galati, given that it is a major company in the national industry. Economy Ministry told Ziarul Financiar "We found out about Sanjeev Gupta's situation for some time. We discussed the situation internally, given that it is related to a major company in the national industry.”
GFG Alliance, controlled by Mr Sanjeev Gupta, took over the Romanian still mill from ArcelorMittal in 2018 in an international deal that also included other production assets. In June 2020, the group announced a EUR 1.2 billion investment plan at the Romanian plant to make it carbon-neutral within five years.