Liberty Steel Ostrava s workers did not return to work as expected, amidst ongoing financial struggles and energy supply issues, reflecting broader challenges in the European steel industry.
Prague and London Czech Republic Prime Minister Andrej Babis intervened April 16 amid growing concerns over the future of the country s biggest steelmaker, Liberty Steel Ostrava, following the collapse of a major financier to its parent companies Liberty Steel Group and GFG Alliance.
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Babis said on his Twitter account that he was involved in an online discussion with local management during a visit to Ostrava. We resolved problems with the management of steel company Liberty Ostrava, whose recent moves have made me and [industry minister] Karel Havlicek very nervous, Babis said. We clearly told the management that the financial property and assets should remain in the Czech Republic.
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Liberty Steel Group is facing a financing squeeze following the collapse last month of its major financier Greensill Capital.
All labor unions at Liberty Steel Ostrava have now issued strike warnings due to their increasing concerns at the situation facing Liberty Steel Group and its parent, the international group GFG Alliance, the OS KOVO Liberty Czech Republic union, the works biggest union, announced on its web pages April 13.
Liberty Steel Ostrava has an annual production capacity of 3.6 million mt and employs around 6,000 people.
A GFG Alliance spokesperson said in an emailed statement that GFG is deeply disappointed by the response of the unions to the current situation at LIBERTY Ostrava, which can only add to the uncertainty following the collapse of Greensill. We are ready to engage with the unions to reduce their concerns over the issue they have r