Galati Steelworks increases steel production by 50% in Romania

Sanjeev Gupta, executive chairman of the GFG Alliance that owns Liberty Steel, has made a major investment in Galati Steelworks, Romania. GHG previously announced the acquisition of the plant from ArcelorMittal. The deal is expected to be completed by early next year. According to the company, the proposed investment will modernize the plant and significantly increase its production capacity.

The new owner has pledged to invest around 330 million euros over the next 3-5 years. The investment should increase the plant's production by 50% from 2 million tons per year to 3 million tons per year over this period. In addition, it also aims to modernize plants for the production of steel products with higher added value. Gupta also promised to explore opportunities for developing new work skills among youth through various research and educational programs.

The company plans to reopen the blast furnace. The GHG Alliance will consider the possibility of restarting a third blast furnace or installing an electric arc furnace, which in turn will ensure an increase in secondary steel consumption.

The announcement comes after a series of discussions between Sanjeev Gupta and government officials and union representatives.

The investment is expected to contribute to economic growth in the region by establishing a presence in Romania. By the way, Galati Steelworks, the largest steel plant in Romania, employs around 5,600 workers.