Until approximately 25 years ago the Galati steel plant was one of the biggest European platforms for the production of steel and steel products. In 1988 over 8 million tons of steel were produced in Galati. Deficient management as well as the covert encouragement of fraud and financial theft at the company brought it to bankruptcy. The idea of privatizing it then emerged. In November 2001 SIDEX Galati was bought by LNM Holdings NV for USD 70 M. Since 2004 the Galati plant has been part of the Mittal Steel Group and in 2006 it changed its name to Arcelor Mittal, the name of the Indian concern that is one of the biggest steel producers in the world.
The highest production of steel after privatization was of approximately 5 million tons in 2005. The technologically outdated and low-output equipment meant that Arcelor Mittal Galati entered a wide-ranging process of technological and personnel restructuring.
An essential stage of this process took place this summer, through the completion of the major overhaul works on furnace number 5, as well as the successful completion of the stage of fine-tuning the modernized equipment, a communiqué issued by plant spokesperson Dorian Dumitrescu shows.
Thus, production is forecast to grow by 15 per cent to 2 million tons in 2015, compared to 1.6 million tons in 2014. A fairly low level compared to other production assets that ArcelorMittal has in Europe. For instance, in Poland steel production will surpass 5 million tons this year.
The results registered in the first months after the investments were made and the fine-tuning period was completed have been positive. In August furnace number 5 registered the highest monthly production in the last 34 years, the communiqué points out, adding that the investments are in line with ArcelorMittal Europe’s strategy, a strategy in which the Galati plant plays “a key role.”
The management of the Galati plant states that in the current technical conditions the production growth target that has been set is possible solely because of the measures taken by the authorities in recent months, “especially in what concerns the restoration of rational prices for natural gas and electricity,” measures that “have to be maintained at the same level on the long term.”
The ArcelorMittal Galati steel plant, controlled by the ArcelorMittal Group, seeks to boost production as a result of technological upgrades worth EUR 10 M, as well as a result of the state’s “restoration” of the business sector’s competitiveness.
The investments are in line with ArcelorMittal Europe’s strategy in which the Galati plant plays a key role according to the company’s communiqué.
