Trade unions at Liberty's Czech-based Ostrava plant have announced a strike alert amid allegations that the plant's emissions allowances will be lent to another Liberty-owned steel mill, Fastmarkets heard.
Earlier this week, the OS KOVO trade union warned of a readiness to strike at Liberty's Ostrava plant amid market concerns about the parent company's financial sustainability.
Liberty Steel has been experiencing financial turmoil since the key financial institution of its parent company,
GFG Alliance, was named in a banking probe.
The union's primary concerns related to talk in the market and international media that implies Liberty Steel might consider lending the Ostrava plant's carbon allowance to Romania-based Galati steelworks, which is also Liberty owned.
"We unequivocally reject the option of lending Liberty Ostrava's emission allowances to the Romanian smelter in Galati...in the required amount," Petr Slanina, chairman of the Basic Organization of OS KOVO, said.
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