Negotiations over the former Liberty Steel site in Dudelange have reached a stalemate, as the government and the site's shareholders have failed to reach an agreement.
On Thursday, Minister of the Economy Franz Fayot told a parliamentary commission that the government had failed to conclude negotiations with the GNG group over the future of the Dudelange site.
The government was ready to facilitate a deal via the SNCI bank, which planned to buy assets and resell them to a future buyer, however according to Fayot, shareholders failed to agree on a price with the state.
The factory has not been operational for months, which has led to a depreciation in value of the site. Fayot said the government had made an adequate proposal to the GFG group, which was refused. A number of other investors have expressed interest in the site, with negotiations underway and in some cases, at an advanced stage, the minister added.
As it stands, the government is awaiting a counter proposal from the site's main shareholders. Fayot said he was in close contact with the trade unions and could count on their support through the negotiations.
CSV MP Laurent Mosar described the situation surrounding the Dudelange site as "dramatic" and attributed the difficulties to "outdated" EU competition law. If not for the law, ArcelorMittal could have maintained the site, resulting in a better outcome for staff and for Luxembourg, Mosar added. For this reason, he called upon the government to campaign for a change in the law at European level.