Indian billionaire Lakshmi Mittal, who owns ArcelorMittalHunedoara plant specialising in long steel products (SIDG) willdecide next month whether to dissolve the company or feed 82.6million euros into it following a capital increase by contributionin cash worth a total of 94 million euros.
"The decision is obviously to increase the capital, but has tobe submitted to shareholders. The dissolution of the company is outof the question," ArcelorMittal representatives said.
The plant's need for cash comes after operating losses worth 222million RON (52 million euros) piled up; as a result, its equitywent down to less than half of the share capital value.
Another steel mill the billionaire owns, namely the plant inRoman, registered a negative book value worth 214.7 million RON (51million euros) on March 31, 2010, and the law requires shareholdersto either restore the capital or dissolve the company. Still, themill's management has not called upon shareholders to make adecision yet.
Last year was Mittal's most difficult since arriving in Romaniain 2001, as the crisis forced him to temporarily close a number ofproduction facilities and make many employees redundant.
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