The largest steelworks in the Czech Republic has run out of money. The Ostrava Regional Court declared the Liberty Ostrava plant bankrupt on Friday. The company says it cannot repay debts of more than five billion Czech crowns (200 million euros).
- Read here: Innviertler becomes head of Liberty Steel
The plant belongs to Liberty Steel, which in turn is part of the GFG Group owned by British-Indian billionaire Sanjeev Gupta. With more than 5,000 employees, it is one of the most important employers in the region. GFG took over the plant from the Luxembourg group ArcelorMittal in 2019. The government in Prague has now announced that it wants to find a buyer for the steelworks.
As in other regions of Europe, the steel industry in the Czech Republic is suffering from falling demand, rising energy costs and competition from China. The blast furnaces in Ostrava have been idle since October. In April, the company had agreed on a restructuring plan with creditors. However, this has now been abandoned.
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Source: Nachrichten
