ArcelorMittal in Galati starts production revival next year

ArcelorMittal Galati, the largest steel mill in Romania and part of the ArcelorMittal group, is targeting a 15 percent increase in steel output in 2015, following a major technical redesign of its production with a major investment. For the first time in the past five years, the company raised the issue of increasing production, after almost halving its output due to the crisis and also closing some of its production lines.

Before the crisis, ArcelorMittal in Galati produced over 3 million tonnes of steel per year. Then the production dropped to 1.6 -1.7 million tons per year and remained at this level in recent years. ArcelorMittal Galati says it aims to increase production in 2015 to more than 2 million tonnes. This forecast became possible only thanks to the measures taken by the authorities in recent months to restore the competitiveness of the Romanian business environment, and especially to establish a rational price for natural gas and electricity.

These solutions must be sustainable in the long term as “the company faced difficult conditions due to significant increases in gas and electricity costs coupled with low demand in international markets. ArcelorMittal in Galati closed most of its blast furnaces, and some of The company also cut its staff, leading to speculation that a steel company controlled by Indian billionaire Lakshmi Mittal would wind up operations in Galati.

The company firmly denies such rumors, saying the Galati plant continues to play a key role in the group's strategy for the European market. Bruno Ribot, General Manager of the Galati business unit, said the large investment of € 10 million shows ArcelorMittal's commitment to the prosperity of its Galati unit.