Luxembourg wants a buyer for the Dudelange steelworks but Liberty has not yet put the plant up for sale Photo: Guy Wolff/Maison Moderne

Luxembourg wants a buyer for the Dudelange steelworks but Liberty has not yet put the plant up for sale Photo: Guy Wolff/Maison Moderne

With the future of the Dudelange steel site hanging in the balance, economy minister Franz Fayot has said owner Liberty Steel is “not a reliable partner” and that the ministry is actively looking for potential buyers.

In the wake of the collapse of Liberty Steel financier Greensill in the UK, the company ran into cashflow problems finally leading to a court on 13 April of its Liège plant.

The site is partnered with Liberty’s Dudelange steelworks, and the company relies on deliveries from Liège to function at full speed. It has been operating at limited capacity for months with staff on reduced hours, although Liberty assured that for April.

“The decision by the Liège tribunal shows that Liberty Steel is not a reliable partner for the future of the group’s Luxembourg plant,” said Fayot in answer to a parliamentary question on Friday.

“The economy ministry continues actively examining different options allowing another industrial player to take over the Luxembourg site from Liberty Steel, if necessary, to maintain steelmaking activities and preserve jobs,” he said.

Citing ongoing talks, the minister said he could not disclose any further information. ArcelorMittal, which had to sell the Dudelange site as part of a 2018 acquisition deal of Italy’s Ilva steelworks under EU competition rules, has already indicated that it is .

In addition, Liberty Steel must put the site up for sale, with no indication yet from the UK group that it plans on doing so. Liberty Steel has appealed the Belgian court’s decision to liquidate the Liège plant.

Labour union OGBL has said that staff in Dudelange have lost faith in Liberty Steel and would like to see the plant change hands.