The future of local firm Arcelor Mittal Hunedoara, which is specialized in long steel products (SIDG), will be determined next month. According to media reports, company officials will decide in July whether to dissolve the company or invest EUR 82.6 million in it following a capital increase worth a total of EUR 94 million.
“The decision is obviously to increase the capital, but it has to be submitted to shareholders. The dissolution of the company is out of the question,” Arcelor Mittal representatives said.
The company’s need for money comes after operating losses worth EUR 52 million piled up.
Last year was Mittal’s most difficult since arriving in Romania in 2001, as the crisis forced the Indian owner to temporarily close a number of production facilities and make many employees redundant.