Liberty Galați steel plant financial and labor crisis

The Liberty Galați steel plant in Romania is facing severe financial instability and labor disputes. In September 2026, labor unions reported that employees had not received full wages since April, with some receiving only 1,500 lei in May. Workers continued to perform essential security and maintenance duties despite the lack of pay. At that time, previous attempts to sell the plant via auction had failed, leading to a reduction in the asking price from 709 million euros to 463 million euros.

By October 2026, the plant's administration began exploring a potential restart through a tolling arrangement, where the facility processes materials for external clients. Initial contracts for 23,000 tons of products have been secured with clients in the United Kingdom and Turkey. If successful, this could allow approximately 1,000 of the 2,000 employees to return to work.

However, the restart remains uncertain due to high electricity costs. Administrators are also considering shifting from auctions to direct negotiations for a sale, a process requiring creditor approval. Any proceeds from a sale would potentially be used to settle the outstanding employee salaries.