ArcelorMittal Galati suffers EUR 334 mln losses in Romania

Newsroom 12/07/2010 | 11:23

ArcelorMittal Galati, the steelmaker controlled by Indian billionaire Lakshmi Mittal, has reported losses of about EUR 334 million in Romania last year, representing some 40 percent of the total year’s business.

The company’s financial results were influenced by the over 50 percent decline in business, owing to the decrease in steel sales worldwide as a result of the economic crisis, and the resulting price collapse. The company exports most of its output.

The steel mill’s losses are the highest ever posted by a local company, and are even worse than the results before privatization, when it was losing USD 1 million a day and was regarded as a black hole in the economy.

Mittal’s attempt to slash costs by making more than 4,000 people redundant did not help stave off the losses. The producer also inaugurated two new solutions to improve the efficiency of the primary flow.

The company commissioned a beach pit for hot metal at the torpedo ladles, and a new system of transporting and processing liquid slag from the steel melting shop.

In 2008, when the market was still booming, the Galati unit’s business came close to EUR 2 billion and profit stood at EUR 165 million.

The four plants controlled by Mittal in Romania, in Iasi, Galati, Roman and Hunedoara, recorded EUR 424 million of losses together.

Dana Ciuraru


BR Magazine | Latest Issue

Download PDF or read online: November 2022 Issue | Business Review Magazine

The November 2022 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “Samsung Remains Top Consumer Tech Provider on Romanian Market.” Read
Newsroom | 29/11/2022 | 10:17

    You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

    I agree with the Privacy policy of
    I agree with the storage and handling of my data by
    Advertisement Advertisement
    Close ×

    We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

    Accept & continue