Liberty Ostrava a.s.: from metallurgical tradition to contemporary challenges and the search for new paths

The Liberty Ostrava a.s. steelworks was founded in 1951 as the Klement Gottwald New Steelworks and became a symbol of post-war industrialisation throughout the region. At the height of its boom, it employed tens of thousands of people and contributed significantly to the formation of Ostrava as a heavy industrial centre of Czechoslovakia. Steel from Ostrava was used in construction, engineering and energy, and was exported to dozens of countries around the world.

After 1989, the steelworks underwent a complex transformation process. From a company that was closely tied to state planning, it became a modern company operating in a competitive market. In recent years, it has been part of the Liberty Steel Group, which belongs to the global GFG Alliance. Until recently, it had the capacity to produce up to 3.6 million tonnes of steel per year and was one of the largest steelworks in Central Europe. Since 2019, Liberty Ostrava a.s. has been part of the Liberty House Group, controlled by Indian-British businessman Sanjeev Gupta.

Current problems

Despite its rich tradition, Liberty Ostrava a.s. has been facing serious difficulties in recent years. In 2023, a critical situation arose when the company stopped purchasing electricity due to debts. Production stopped and the future of the steelworks was in jeopardy.

Shortly afterwards, mass layoffs began, with approximately 1,600 employees being laid off during the summer of 2024. Given that the steelworks had around 4,000 employees at the time, this had a significant impact on the social stability of the entire region. After these cuts, approximately 2,500 employees remained employed by the company.

The year 2025 brought a major turning point when the insolvency court approved the sale of Liberty Ostrava a.s. to a Czech consortium as a going concern. This step made it possible to preserve the aforementioned 2,500 jobs and gave at least some hope that production could be maintained and the company stabilised.

Impact on the region

Ostrava and the entire Moravian-Silesian Region have historically been linked to the steel industry. So when the steelworks began to struggle, it was not just an economic problem for the company, but a major socio-economic upheaval. In June 2024, Liberty Ostrava a.s. employed approximately 4,000 people (a year earlier, it had approximately 5,000 employees) and now provides work for approximately 2,500 employees. The loss of these jobs affected a large number of families and had an impact on related services and businesses. The situation at Liberty Ostrava a.s. has thus reopened the debate on the future of industry in the region and the need to find new ways to ensure decent employment for people.

In these difficult times, the importance of the Moravian-Silesian Employment Pact (MSPAKT) is becoming apparent. This non-profit organisation, whose main founders are the Moravian-Silesian Region, the city of Ostrava, the Association of Industry and Transport   and the Regional Chamber of Commerce of the Moravian-Silesian Region, cooperates with the region, cities, education providers and employers to promote employment and prepare people for the changing labour market.

MSPAKT focuses on career counselling, education and retraining. In connection with the layoffs at Liberty Ostrava a.s., the organisation helped workers who lost their jobs to find new employment or acquire the necessary skills to facilitate their return to the labour market. It places great emphasis on connecting schools and companies so that graduates leave with skills that meet the current needs of the regional economy.

Thanks to its cooperation with employment offices, municipalities and employers, MSPAKT has become an important player in the process of mitigating the impact of the Liberty Ostrava a.s. crisis. Its activities help to ensure that the social upheaval caused by the situation at Liberty Ostrava a.s. does not translate into a long-term increase in unemployment.

Outlook for the future

The future of Liberty Ostrava a.s. will depend on its new owners and their ability to modernise production and find applications for steel in the changing European economy. The key will be to manage the transition to low-emission industry and maintain competitiveness in the global market.

For the city of Ostrava and the entire Moravian-Silesian Region, it is essential to continue systematically supporting economic diversification, regardless of the future of Liberty Ostrava a.s. The region must gradually move away from its one-sided focus on heavy industry and energy and focus on modern, sustainable and technologically advanced industries and the provision of other services and tourism.