Liberty Steel in Dudelange declares bankruptcy amid financial struggles

Liberty Steel, a steel plant in Dudelange, Luxembourg, has officially declared bankruptcy after nearly two years of inactivity. The company’s financial troubles have left 150 employees without salaries for months, sparking significant concern among workers and unions. The insolvency declaration, filed last Friday, marks a turning point in the plant’s prolonged financial and operational struggles.

The Dudelange site, acquired in 2019 by GFG Alliance from steel giant ArcelorMittal, has faced repeated setbacks. Efforts to transfer the facility to a new operator were unsuccessful, largely due to resistance from GFG Alliance, the parent company. The last two years have been marked by unpaid wages and uncertainty, culminating in the workforce not receiving their October 2024 salaries. Workers, who have primarily been tasked with maintaining the site, are now left in a precarious situation.

Union representatives, particularly from OGBL, have criticized Liberty Steel for failing to address its financial obligations, describing the bankruptcy as “inevitable.” According to union official Stefano Araujo, the company had no means to cover overdue bills or wages. The unions are now focusing on finding a new operator to secure the future of the plant and preserve jobs. Araujo emphasized that there is both potential and demand in the market, and interested parties have already expressed willingness to take over the site.

The Luxembourg government has also stepped in to provide relief. Labour Minister Georges Mischo announced plans for wage advances to help affected employees navigate the holiday season. Under Luxembourg’s insolvency laws, workers are entitled to receive their November wages, along with 50% of their notice period pay.

While the insolvency process is underway, union leaders and government officials are working to expedite the search for a buyer. Several potential investors have shown interest, and the unions hope a quick transfer can ensure continuity at the plant. Information sessions for employees are scheduled in the coming days to address their concerns and provide updates on the next steps.

Sources: Reporter.lu, Tageblatt.lu, L’essentiel Luxembourg, RTL Lëtzebuerg, Photo: Fotolia