ArcelorMittal Hunedoara temporarily suspends operations due to economic difficulties

The company announced a suspension of operations until the end of March due to high electricity prices

Romanian steelmaker ArcelorMittal Hunedoara, a subsidiary of global steelmaker ArcelorMittal, has announced a temporary suspension of its operations from 14 February to 31 March 2025. The main reason for this decision was high electricity prices and the need to cut costs to minimise financial losses, according to a statement filed with the Bucharest Stock Exchange.

The decision was made by the company’s Advisory Committee due to the economic challenges faced by the company. The company said in a statement that the temporary suspension is also aimed at protecting employees from the possible negative effects of economic instability.

During the suspension period, employees covered by this measure will receive 75% of their base salary.

ArcelorMittal Hunedoara is part of ArcelorMittal Europe – Long Products and specialises in the production of steel sections, billets and long products. The plant operates an electric arc furnace and produces 200-300 thousand tonnes of steel per year. The company employs 584 people and a number of contractors. This is not the first time the company has faced challenges related to energy prices.

High electricity prices and general economic difficulties are forcing steel companies around the world to adapt to new realities. Analysts believe that measures such as temporary production suspensions may become common in the sector until the market stabilises.

Augustin Kochuparampil, Chairman of the Board of Directors of ArcelorMittal Hunedoara, stressed that the company is closely monitoring the situation and is ready to resume operations promptly under favourable conditions.

The last time the Romanian company announced a production cut was in early December 2024. From 9 December to the end of last year, production activities were slowed down due to a lack of orders.

As a reminder, in 2024, ArcelorMittal reduced steel production by 0.3% compared to 2023, to 57.9 million tonnes. Iron ore production for the period increased by 0.9% y/y – to 42.4 million tonnes. Steel shipments to customers in the period totalled 54.3 million tonnes (-2.3% y/y), and iron ore (AMMC and Liberia only) – 26.4 million tonnes (+0% y/y).