The difficult situation facing the Liberty Galați steel plant is increasingly being viewed not only as a local economic problem, but also as a strategic vulnerability for the entire Romanian economy.
One of Romania’s most important construction entrepreneurs, Cristian Erbașu, has publicly spoken about the need to restart steel production in Galați and even about the possibility of direct involvement by the Romanian state in saving the plant.
His remarks were made during the PSC Galați regional conference, “Ideas That Build the Future,” organized by the Employers’ Association of Construction Companies. According to Monitorul de Galați, the businessman argued that the decline of the steel industry in Galați has become a national strategic issue.
The importance of the Galați steel plant
“This industry, on which the entire country once relied, has suffered enormously in recent years, and unfortunately the owners who have come and gone have failed to find solutions,”
Cristian Erbașu said, according to the Galați publication.
His statement comes at a time when Liberty Galați is going through one of the most difficult periods in its post-privatization history. Financial problems, declining production, and uncertainty regarding future investments have fueled concerns about the loss of an industrial capacity considered essential for Romania.
In the entrepreneur’s view, one of the major problems facing Romania’s steel industry has been the lack of a coherent strategy between the state and investors. Erbașu believes that the Romanian state has failed to develop an integrated plan to protect and develop a sector that is vital to the economy.
“I believe this is one of our biggest problems. It is not a regional issue; it is a national issue. There has been no cooperation and no well-designed, integrated plan involving the Romanian state,”
he said, according to Monitorul de Galați.
Romania has become increasingly dependent on imports
The businessman also pointed out that Romania has become increasingly dependent on imports of raw materials and steel products, while its own industrial capacities have been allowed to deteriorate. He referred to resources such as steel slag, used in infrastructure and construction projects, which was once produced in significant quantities at Galați.
“It is obvious that other market players probably had an interest in preventing Galați from reaching its full potential. Importers of raw materials, in particular, benefited from this situation,”
Cristian Erbașu stated.
One of the most important points made by the Romanian contractor concerns the possibility of direct state involvement in reviving the steel plant. At a time when debts and deteriorating facilities raise questions about whether a private investor alone can support a turnaround, Erbașu believes the state should actively participate in the restructuring process.
“I think it would be a major mistake if the Romanian state were not involved in these factories. The state itself could invest alongside private investors until this entity becomes operational again at certain minimum performance levels,”
the entrepreneur explained.
His comments come as reindustrialization is becoming an increasingly prominent topic in European public debate. The war in Ukraine, geopolitical tensions, and the need for strategic independence have once again highlighted the importance of heavy industries, including steel production.
Steel will remain strategically important
In this context, Erbașu believes that future infrastructure, defense, and railway projects could once again generate demand for steel produced in Galați. Romania is expected to benefit from major investments financed through European funds and regional security programs, which could help revive the local steel industry.
“We will see whether the numerous contracts and financing programs for major infrastructure projects will stimulate local and regional interest so that large-scale production can return to Galați,”
he said.
The entrepreneur also recalled the period when the Galați steelworks was one of the most important steel production centers in Eastern Europe and an internationally recognized industrial benchmark.
“Galați was known worldwide as a landmark in the steel industry. But that was 20 or 30 years ago,”
Cristian Erbașu concluded.
Liberty Galați is one of Romania’s largest steel producers and a major employer in the country’s southeastern region. Over the past decades, the plant has undergone multiple ownership changes, restructuring processes, and periods of financial difficulty.
Erbașu Group, controlled by Cristian Erbașu, is one of Romania’s largest construction companies and is involved in major infrastructure, civil engineering, and industrial construction projects.
