The first blast furnace that was idled at Hungarian steelmaker Dunaferr in summer last year is irreparably damaged and will not restart, sources close to the plant told Argus today.
Workers at the site have been informed the other furnace will be restarted in the coming weeks, although it is not yet clear where the raw materials will come from. Liberty Steel has been supplying coal to feed the site's coke ovens since December, when it entered liquidation.
The furnace needs to restart before it is also too damaged to repair, the sources said.
Executives from Liberty Steel are travelling to Hungary to meet with government officials for "do-or-die" talks in the next week, one source close to the situation said. Metinvest has also recently met with government officials to discuss its interest in the plant.
Liberty Steel declined to comment and Metinvest did not reply to request for comment.
The government and administrator want to find a buyer that is willing to make the necessary investments to turn it into a green-steel producer, moving away from the current production configuration.
The state has guaranteed wages to the plant's workers for the next six months, while power supply continues from the state-owned producer. Amendments to the country's bankruptcy law mean the site can continue to operate despite being lossmaking.
