Ostrava steelworks’ new owner Liberty to cut production 20 pct

16-07-2019

Liberty Ostrava, the largest integrated steel mill in the Czech Republic, has announced plans to temporarily cut steel production by 20 percent.

The company said the move involved reducing the pace of production and would not affect its 6,000 employees.

When Liberty Ostrava took over the steelworks from ArcelorMittal this year, its billionaire owner Sanjeev Gupta pledged not to cut production or close the plant.

The company now says the temporary cut is necessary to due rising costs for raw material and CO2 allowances.

Czech union leaders had claimed that Liberty House’s plans for the developing the steelworks were unsustainable and inconsistent with EU requirements.