The revocation of Liberty Steel's judicial reorganisation plan for Tilleur and Flémalle plants in the Liège region was ordered by Belgium's authorities on 3 March. LLD, the Liège-based subsidiary of steelmaker Liberty Steel is at risk of being terminated.

This is a new judicial step that should sound the death knell for the steelmaker on the banks of the Meuse after it failed to meet its commitments under a judicial reorganisation plan.

On 16 March, the commercial tribunal in Liège will rule on this request to revoke the judicial reorganisation plan and thus, in the long term, on the dissolution of the Belgian entities of the Liberty Steel group. In less than two weeks, the 690 workers in Liège will find out what's next for them.

The dissolution of Liberty Steel Liège could have serious consequences for the Liberty Steel Dudelange site, as the Liège sites supply the Luxembourg site.

“We had foreseen this step and we take note of this procedure which may lead to the liquidation of the Liège sites by decision of the court. In the meantime, we are continuing our work with the Ministry of the Economy to find solutions if the worst happens in Liège”, said Robert Fornieri, deputy secretary general of trade union LCGB.

Ministry and unions working on an alternative

The economy ministry, the LCGB and the OGBL issued a joint press release stressing their motivation to prepare for a solution in order to “maintain steel activities and preserve jobs on the Dudelange site by taking into consideration all possible options, including a takeover by another industrial player.”

A takeover of the Dudelange site is therefore within the realms of possibility.

“The Dudelange site was up and running last week and at the moment they have practically nothing to produce. Without Liège, I don't know how Liberty Steel can keep the site running, except by asking customers to buy the raw material”, said Fornieri. “For the month of March, we don't have much visibility,” he added.

“Discussions are being held to find solutions. I am confident for the future of the Dudelange site, which is an interesting and interested site”, says the trade union representative.

In any case, the future of Liberty Steel in Dudelange is looking bleak, especially since, according to information obtained by Delano's sister publication Paperjam, the management is beginning to draw on its last financial reserves.

This story was first published in French on . It has been translated and edited for Delano.