ArcelorMittal Galati reported losses of 110 million euros
Ten years ago, the Galati plant had a turnover of over 6.3 billion. lei. The reduction in the demand for steel, the drop in the price of steel and the competition of Turkey and Ukraine have hit the business of the combine hard.
The current ArcelorMittal Galati, the former Sidex steel colossus, had in the last decade the reduction of the number of employees by almost 11,000 people and the accumulated losses of over 4 billion lei.
However, the Galati plant remains one of the pillars of Romanian exports. Last year, the company exported goods worth 1.94 billion lei. Being down by 11.4% from the level of 2.19 billion lei in 2013. Sales on the domestic market increased by 7.8%. From 1.52 billion lei in 2013 to 1.64 billion lei last year.
The massive losses, as well as the costs associated with renewable energy, were repeatedly put on the table by the representatives of the steel plant. Including the billionaire Mittal, evoking in 2013, during a visit to Bucharest. Where he had discussions with Prime Minister Victor Ponta, the possibility of withdrawing from Europe due to high energy prices.
The Mittal business, the largest employer in Galati and the largest company in the county by turnover, is trying to find a future in the new conditions, where global demand has not recovered, and China is playing games.
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