Mittal's Galati business plummets to 800 million euros

The business of ArcelorMittal Galati steel plant, controlled by Indian billionaire Lakshmi Mittal fell by 58% last year to some 800 million euros, from 1.94 billion euros the year before, as a result of the drop in both demand on the market, as well as prices for thick sheet metal, the main product of the plant, company officials say.

The plant slipped into the red, after having concluded the previous year with 164 million euros in net profit. The company's management did not reveal the value of the losses.

ArcelorMittal Galati representatives, however, estimate that production will increase this year by more than 30% compared with last year's low, 1.7 million tonnes of liquid steel, because of the rise in demand from Turkey and domestic market, driven by the sales of Dacia.

"The rise in demand from Turkey is strong. In Romania demand has also rebounded but at a slower pace. Many of our clients who had trouble meeting payments last year have solved part of these problems in 2010. Even with this rebound in demand lately we're still working a 35-40% below the 2008 level," said Thierry Le Gal, general manager of ArcelorMittal Galati, who also runs the regional operations of the group, which also includes Turkey and Macedonia.