Romanian UMB Steel begins reconstruction of Oțelu Roșu plant

Romanian company UMB Steel has begun reconstruction of the Oțelu Roșu steel plant in Caraș-Severin County, Profit reports.

UMB Steel acquired one of Romania’s oldest industrial facilities in December 2024 for 140 million lei ($32 million).

According to the project documentation, these works will not result in the start of production activities; the current goal is to make the existing structures and equipment safe.

The current stage will include roof repairs, restoration of the rainwater drainage system, restoration of facades, sanitary and repair works, and replacement of metal elements. It also involves the reconstruction of the railway track serving the steel plant building.

The investment cost is estimated at 3.4 million lei, and the work schedule will be 12 months.

UMB Steel intends to carry out a technological upgrade and make the Oțelu Roșu plant viable. The company intends to produce steel, rolled profiles, and their derivatives. However, all the equipment and machinery that made up the technological flow have not been in operation since 2012. Since the closure of production, the industrial platform has been subject to vandalism and systematic theft.

Last year, it was reported that UMB plans to invest more than €300 million in the restart of Oțelu Roșu. Previously, the enterprise had been sold several times. The plant’s design capacity is 850,000 tons per year.