**Romania**: Liberty Galați has been highlighted as a key player in the country’s defence sector amidst its pre-insolvency procedures. The Romanian government is allocating €200 million to support its operations for producing vital military supplies, while addressing challenges within the steel industry.
The integrated steel mill Liberty Galați, located in Romania, has been identified as a crucial contributor to the nation’s defence industry, according to an announcement by Economy Minister Bogdan Ivan, as reported by Profit.ro. This follows the company’s recent declaration of entering pre-insolvency procedures aimed at navigating weak demand and the ongoing implications of import duties imposed by the United States.
Liberty Galați is recognised as one of the remaining crude steel producers in the region, and its operations are expected to supply vital raw materials for Romanian armament factories situated in Brașov, Cugir, Sadu, and Dragomirești, as Minister Ivan indicated.
In a bid to support the steel mill, the Romanian government has earmarked RON 1 billion (approximately EUR 200 million) from the national budget for the year 2025. This funding is designated for the production of ammunition and military equipment, illustrating the increased significance of the defence sector in light of recent global geopolitical tensions. The European Union is actively pursuing greater strategic autonomy and bolstering defence capabilities, as evidenced by the announcement of the “ReArm Europe” programme. This initiative is set to mobilise an initial EUR 150 billion from a broader plan that encompasses a total of EUR 800 billion.
In tandem with the government’s measures, the Energy Policy Group, a Romanian think-tank, has released a report that outlines the challenges facing Romania’s steel industry. The report highlights issues such as high and fluctuating energy prices, uncertainty regarding the future availability of hydrogen and steel scrap, restricted financing opportunities, and the absence of a green steel market.
Despite these challenges, the report concludes that Romania boasts significant renewable energy potential, a robust automotive sector, and a thriving infrastructure development landscape, placing it in a favourable position to transition towards competitive low-carbon steel production.
Source: Noah Wire Services
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