The premier steel manufacturer in the Czech Republic has filed for bankruptcy.
The colossal steel factory in the Czech Republic, Liberty Ostrava, owned by GFG Conzern of the wealthy dual-national Sanjeev Gupta, has been declared bankrupt by the Regional Court of Ostrava. The factory, a significant employer for the area with approximately 5000 workers on its payroll, is unable to repay debts exceeding 5 billion Czech crowns (roughly 200 million Euros) according to their own admissions.
The Czech administration is on the hunt for a new owner for the steelworks to prevent job losses and economic instability in the region. This plant was acquired by GFG from ArcelorMittal back in 2019.
The steel sector in the Czech Republic, along with Germany, has been hit hard by decreasing market demand, skyrocketing energy costs, and competitive prices from Asian manufacturers. The blast furnaces at Ostrava have remained inactive since October last year. Despite agreeing on a restructuring plan with creditors in April, Liberty Ostrava has now abandoned this plan.
