Czech Republic-based steelmaker Liberty Ostrava, a subsidiary of UK-based Liberty Steel, has announced that it has started implementation of its alternative restructuring plan “Plan B” as it failed to agree with its energy supplier Tameh Czech on the provision of energy supplies on fair terms. With plan B, which does not envisage further cooperation with Tameh, the company targets the resumption of production at its rolling mills, the resumption of blast furnace operations, significant cost savings, and the securing of energy supplies and financial assistance from its parent group.
Liberty Ostrava developed the alternative restructuring plan in March with the aim to restart blast furnace operations if the deadlock with iTameh Czech continued, as SteelOrbis previously reported.
As part of the plan, the company will start the consultation and the technical process for the potential closure of the plant’s two remaining coke ovens, which will further reduce costs by over €1 million (CZK 25 million) a month. In the short term, moving to a self-supply solution will delay the execution of the plan, but in the long term it will provide a cheaper and more efficient solution than continuing to work with Tameh, according to the statement.