Hüte Liberty Ostrava is faced with the fundamental task of finding a new source of energy. The company had a bad parting with its current supplier of electricity and technical gases, Tameh Czech. At the same time, this means that the blast furnace in the Ostrava company will not be fully operational until 2025.
“According to the current plan, the deadline for resuming operations at the blast furnace and the steel plant is set for December 31, 2024. The company plans to fully start raw steel production by the end of 2025,” said steel plant spokesman Ivo Štěrba when asked by SZ Byznys.
In the variant that counted on the renewal of cooperation with Tameh, Liberty estimated that the blast furnace would be re-ignited in June of this year.
The resumption of blast furnace operations is a key part of Liberty’s restructuring plan. The blast furnace is used for the production of steel itself, i.e. for the so-called primary production.
“The key aspect of the preventive restructuring of the entrepreneur (Liberty Ostrava, editor’s note) is therefore the resumption of operations, especially primary production in the blast furnace. The restart of primary production will ensure the stabilization of the entrepreneur’s financial situation in the future and the plant’s ability to generate cash flow from which it will be possible to pay the claims of the affected parties without jeopardizing the plant’s further operability,” wrote Liberty in the restructuring plan.
Since Liberty Ostrava broke up with the current energy supplier Tameh Czech, they have to find a new source of electricity and gas. In the restructuring plan, the steel mill outlined a solution called the New Energy Complex.
“The new power complex will provide cold air for the blast furnace through electric blowers, steam through modern boilers and compressed air through a number of compressors. The new energy complex will provide all the necessary resources and media to start the blast furnace and operate the plant,” Liberty described in the restructuring plan.
The smelter expects the cost of this solution to be around 40 million euros. According to the current exchange rate, this is approximately one billion crowns. In the restructuring plan, Liberty expects to borrow most of this amount. The financing provider will obtain new technologies as collateral.
“Based on the detailed specifications, we have already received quotations. We will notify the supplier after signing the contract. All investment costs are taken into account in the plan and are expected to be covered through financial support from the parent group, working capital, inventory financing and possibly fixed asset financing,” the smelter’s spokesperson said now.
The resumption of production is expected to affect only one of the three blast furnaces at Liberty. After all, the smelter was already producing in this regime before the full outbreak of the current crisis. The last operating blast furnace put Liberty into a so-called warm lull last October.
Decommissioning of the coking plant
Liberty, on the other hand, does not count on resuming operation of the coke plant.
“Since the blast furnace will not be restarted until December, it is technically and financially demanding to maintain production in the coke batteries. That’s why we decided to start consultations and technological preparation for the possible shutdown of the two remaining coke ovens,” said spokesman Liberty Štěrba.
The coke produced from black coal is then used as fuel in the blast furnace. Liberty promises monthly savings of around 25 million crowns since the shutdown of the coke plant. Employees from this operation will be offered retraining and transfer to another position within the company.
Most of Liberty’s five thousand employees have been at home since December. The difficult situation in the company is also evidenced by the fact that the company did not pay health insurance and two-thirds of social insurance for its employees in March, the trade union leader from Liberty, Petr Slanina, said through the Czech Press Office.
“Some payments have been delayed due to higher cash demands as we gradually try to ramp up production and get employees back to work. We are in contact with those affected in order to resolve the situation effectively,” responded Liberty spokesperson Ivo Štěrba.
“Although we will always try to make payments on time, during the implementation of the restructuring plan and the financial stabilization of the company, there may be short-term delays in payments at certain moments,” added the representative of the smelter.
Events around Liberty Ostrava on SZ Byznys
The editors of SZ Byznys closely follow the events surrounding Nová huti from the Liberty group. The most important articles on the topic are available in the overview below:
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