ArcelorMittal Galati, the biggest steel plant in the country,controlled by Indian billionaire Lakshmi Mittal will double itsproduction capacity to more than 4.2 million tonnes of liquid steelas of January 2011, when the upgrade of a furnace is completedfollowing an over 50 million-euro investment.
The number five furnace was closed in October 2008 as a resultof the drop in orders caused by the world economic crisis and isnow being upgraded, a process scheduled for completion early in2011.
"At present, with the furnaces still in operation the annualmaximum output of ArcelorMittal Galati amounts to 2.2 milliontonnes. The new furnace, to become operational in January 2011 willhave a 2 million-tonne capacity," the company's managementsaid.
From 2006 through 2008, the output of ArcelorMittal Galati,whose turnover stood at 1.84 billion euros in 2008, maintained at 4- 4.5 tonnes of liquid steel per year, that is twice the maximumlevel at this moment, but the company officials say the plant maybreak even.
The representatives of the company did not provide anyinformation on the financial results of 2009, but in midyear hadsaid they were operating at a loss, while sales had gone down by70% compared with the year before.
From the 2004 through 2008, the steel plant held by billionaireMittal posted cumulated profits worth 645 million euros, and lossesworth 44 million euros only in 2005.
The management of ArcelorMittal estimates that following theongoing 53 million-euro investment the variable costs of thefurnace will go down by 12 euros per tonne of liquid steel, so thatwhen it becomes operational, the plant will save 24 million euros ayear.
Thierry LeGall, the CEO of ArcelorMittal Galati and of FlatCarbon Europe - South East Division said that the steel productionof the plant was on the rise, having gone up about 60% comparedwith October.
"The situation we had at the beginning of 2009 is improving now.Whereas back then we saw a decline of 60% of the output registeredbefore the crisis, now we are at minus 35%, a level reached inOctober 2009. It is possible and necessary that 2010 should be aprofitable year," Thierry LeGall said.
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