News Companies ArcelorMittal 991 11 December 2024
Romanian company to suspend operations until the end of the year
Romanian steelmaker ArcelorMittal Hunedoara, a subsidiary of global steelmaker ArcelorMittal, has announced that it will cut production from December 9 to the end of the year due to a lack of orders. In a statement filed with the Bucharest Stock Exchange, the company explained the decision by economic difficulties caused by a decline in demand for its products.
“Given the economic difficulties caused by the lack of orders and, as a result, insufficient production, we have decided to temporarily reduce the company’s production activities,” the statement said.
Employees affected by this reduction will be paid 75% of their base salary.
It should be noted that this is not the first time the company has taken such actions. In 2022, ArcelorMittal Hunedoara suspended production due to a lack of orders. In addition, in 2020, the plant’s operations were temporarily suspended due to the COVID-19 pandemic, which significantly affected global markets and steel demand.
ArcelorMittal Hunedoara is part of ArcelorMittal Europe – Long Products and specializes in the production of steel sections, billets and long products. The plant operates an electric arc furnace and produces 200-300 thousand tons of steel per year. The company employs 584 people and a number of contractors.
Despite the sale of its main steel plant in the Romanian city of Galati to Liberty Steel in 2019, Hunedoara remained part of ArcelorMittal.
In January-June 2024, ArcelorMittal Europe increased steel production by 7.8% compared to the same period in 2023 to 15.64 million tons. Steel shipments decreased by 0.5% y/y – to 14.64 million tonnes, including 10.51 million tonnes of flat products (-0.08% y/y) and 4.14 million tonnes of long products (-1.7% y/y).
