The decline in ArcelorMittal Galaţi steel production will have adirect negative impact over Romania's economic growth, but is alsoa negative signal about the world economy trend. The global steeldemand is again showing signs of decline, meaning that the economyhas not regained its health, yet.
The recent decision by billionaire Lakshmi Mittal to close one ofthe two furnaces that are operational at the biggest steel plant inRomania, ArcelorMittal Galaţi, is likely to threaten Romania'salready fragile economic growth expected for 2011, considering thegroup's domestic operations are worth about 2% of Romania'sGDP.
Given the 24% higher steel volume that ArcelorMittal produced inthe first half of this year and the soaring sheet metal prices overthe past year, by around 55%, the company's turnover is likely togo beyond 1.2bn euros at the end of 2010 despite the dramaticproduction cut towards the yearend.
Lakshmi Mittal geared up for investments of several hundred milliondollars in Galaţi complex for its modernisation ahead of thecrisis, but investment plans were put on ice amid the plummetingmarket.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
