2024-04-06 14:50:54
The Luxembourg Government reiterated this Tuesday its commitment to trying to maintain the jobs of the 160 workers at Liberty Steel, in Dudelange, which ceased production almost two years ago.
In a parliamentary response to LSAP deputies, Dan Biancalana and Mars Di Bartolomeo, the Minister of Economy, SMEs, Energy and Tourism, Lex Delles, once again mentioned that “the trajectory started with the previous Government continues and the efforts of the [atual] Government continue to focus on maintaining jobs and industrial activities at the Dudelange facilities”.
In the letter, the deputies recall another parliamentary response regarding the crisis situation that has been going on at the factory for several months and where the minister had already announced the same approach.
In that document, it was added, however, that following meetings with the unions and the administration, to take stock of the evolution of the situation, the Government intended to “take advantage of the opportunities now offered by the Law of August 7, 2023 relating to the preservation of companies and the modernization of the bankruptcy law, which came into force on November 1, 2023, to structure the next steps”, and “a letter was sent to the company’s management at the beginning of December”.
“We don’t produce anything, nothing leaves our factory”
Regarding this, Lex Delles says in this Tuesday’s response that the letter the deputies refer to “gave rise to an exchange of correspondence with the shareholder or his designated representative”, without providing further details.
At the end of February, the situation experienced by the 160 Liberty Steel workers, including Portuguese, was increasingly precarious. João da Silva, an employee and union delegate at the steel galvanizing company, told Contacto at the time that many feared for their future.
“Until now we have always received it, but we are already thinking month by month. Will we receive it this month? This doubt has been haunting us for months”, confessed this Liberty Steel laboratory technician, who has worked at the company since 2012. A concern that has been growing for almost two years, when the factory in Luxembourg ceased production. “The situation remains the same, we produce nothing, nothing leaves our factory”, explained João da Silva.
Liberty Steel at risk. “We fear for our salary at the end of the month”
Liberty Steel purchased the Dudelange unit from ArcelorMittal in 2019, but operational problems have worsened and are not exclusive to Luxembourg. There are other factories of the company GFG Alliance/Liberty Steel in Europe that are experiencing similar situations to the Grand Duchy.
Company moves forward with restructuring in the United Kingdom
At the end of March, the Reuters agency reported that the business group reached an agreement with the main creditors, paving the way for a restructuring of its businesses in the United Kingdom.
The agreement, which mainly involves the debt of its structures in British territory, will allow Liberty Steel to consolidate its British steel business under a new entity and corporate structure. In January last year, the company had suspended operations at two British factories and cut production in Rotherham, in northern England, due to high energy prices.
Liberty Steel. 160 workers with wages and employment at risk
Despite this news regarding operations in the United Kingdom, no details are known so far about the future of production at Liberty Steel’s Luxembourg facilities.
2024-04-06 14:50:54