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January 24, 2022
BUSINESS

ArcelorMittal invests EUR 200 M in Galati facility, boosts market share by 20 pc

ArcelorMittal’s 2009-to-date investments in its Galati-based steel mill amount to over 200 million euros, which resulted in a 20 per cent rise in its local market share compared to 2010, said Galati plant CEO Bruno Ribo, Agerpres informs.
According to him, ArcelorMittal Galati operates in a highly competitive international business environment. In such markets, production costs are the key to maintaining market share. Given that we focus on the Black Sea region in particular, we are forced to compete with companies that practice lower prices. Under these circumstances, although we recorded losses in the past four years, the investments we made in the Galati facility since 2009 stand at more than 200 million euros, of which 83 million euros in furnace No. 5. These investments were aimed at increasing the company’s competitiveness and efficiency. As such, we were able to increase our local market share by 20% compared to 2010, despite a declining demand. We hold over 50% of the market for our main products. The additional taxes we further have to pay are still a burden for all industrial companies in Romania and they affect the sustainability of operations. The final price of the MWh is now affected by additional fees such as cogeneration, distribution and transport, which reflects in our financial results, added the CEO of ArcelorMittal Galati (former Sidex). “We currently do not plan closing down or relocating the Galati-based ArcelorMittal plant. We consider it is important that Romania further focuses on supporting economic growth and industrial development and continues the programs allowing the growth of production and of exports with high value added, protecting the current workforce and offering investors the opportunity to create new jobs in Romania. ArcelorMittal Galati has 7,000 employees and there are currently no plans in view to implement another voluntary departure scheme”, concluded Bruno Ribo.

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