Around 185 workers are currently employed at the Liberty Steel plant in Dudelange. The site is highly dependent on Liberty Steel Liège, which acts as its supplier. The Luxembourg plant's production was also then sent back to Belgium, which would pay back for what it had received.
The announcement of the liquidation of Liberty Steel in Liège is certainly not good news for Luxembourg. “We cannot be happy about the liquidation of a company because of the heavy and sometimes indirect consequences on jobs, with suppliers for example. On the other hand, it is not a surprise and the employees are fed up with being under the Liberty Steel flag in Dudelange, where production has been extremely low for weeks. Unfortunately, we have to go through this catastrophic scenario to envisage a more serene future,” said Robert Fornieri of the LCGB.
The LCGB and OGBL unions have requested an emergency meeting with the management of the Dudelange plant. “We want to know what scenarios are envisaged for the continuation of activities in Dudelange and above all to know the state of the finances because the site functions in part thanks to a flow of cash from Liège every month. I don't know what far-fetched scenario Liberty Steel will come up with to find cash”, said the LCGB's deputy general secretary.
On 20 April, the unions will also meet with labour minister Georges Engel (LSAP) and economy minister Franz Fayot (LSAP) to discuss the matter. Liberty Steel meanwhile has appealed Wednesday’s decision.
No interest from ArcelorMittal for a takeover
Few people believe in the viability of the Dudelange plant under the Liberty Steel flag without the Liège plants. But for the time being, discretion remains the order of the day regarding one or more potential buyers in Luxembourg. ArcelorMittal has already made it known that it has no interest, especially as the steel giant is in the process of massively expanding its activities in Florange.
When asked about the subject, Fayot insisted that he was “prepared for the possibility of a judicial liquidation in Liège and its future consequences on the Dudelange site”, namely bankruptcy. He also stated that the economy ministry already have identified “several potential buyers”.
Talk of a buyer for Dudelange is perhaps a little hasty, insofar as the Luxembourg site is in not part of the liquidation procedures of Liberty Steel Liège. “Once again, if Liberty Steel manages to find a way to send cash to Dudelange to pay for supplies, invoices, debts and workers' salaries, then no one will be able to force Liberty Steel to sell the plant,” said Fornieri.
A bitter taste for the municipality
The mayor of Dudelange, Dan Biancalana (LSAP), admits that the misadventures of Liberty Steel leave a bitter taste. “Three years ago, everything led us to believe that Liberty Steel was going to give a new impetus to this plant with investments and a project. With the liquidation in Liège and the approaching bankruptcy of Dudelange, which is already idling, the situation does not bode well,” he said.
In recent years, Dudelange has not been spared from industrial setbacks. Last June, Guardian confirmed the closure of its Dudelange site and a transfer of production to Bascharage.
“I remain confident about the industrial potential of the municipality. I know that the economy minsitry is making contacts to find potential players who could be involved in an industrial activity in Dudelange. Industrial development remains an important pillar for the economic development of Luxembourg. Industry, driven by technological development, creates jobs. Finally, at the level of the municipality, it remains a pillar for its economic development, in the same way as logistics and health technology,” Biancalana said.
This story was first published in French on . It has been translated and edited for Delano.