Mittal Steel Hunedoara (former Siderurgica) steel mill held by world's largest steel manufacturer, Mittal Steel, made 1.2 million-euro (4.3 million-RON) net profit in the first six months of the year.

bIt had posted losses worth almost 1 million euros (3.5 million RON) in the same time last year. Its sales increased by about 20% to 104 million euros (370 million RON).

Another subsidiary in Romania, Mittal Steel Iasi (the former Tepro), which makes welded pipes and steel profiles, cut its losses 11 times from the same time last year.

The company ended the first half with 0.7 million-euro (2.4 million-RON) losses, compared with the 8.9 million-euro (32.5 million-RON) losses in the same time of 2005. The turnover fell 10% from 35.7 million euros (130.6 million RON) to 32.15 million euros (113.8 million RON).

"The reduction in the turnover is due, on the one hand, to the decline in prices worldwide and, on the other, to the reduction in the amounts sold, caused by the overhaul and the halting of the operations of a production facility in order to make the investments planned for the second quarter of 2006. We estimate 2006 to end with a 10% increase in sales," the half-year report of the company reads.

Mittal Steel has conducted extensive programmes to restructure the activity both in Iasi and in Hunedoara, managing to cut the losses of the two companies and even make some profit.

Tepro posted 12 million-euro losses last year against an almost 66 million-euro turnover. It cut the number of employees by some 560 last year through a voluntary departure plan, which resulted in expenses of 4.1 million (15 million RON), the main cause for last year's losses. The company had 863 employees left at the end of 2005.

Mittal Steel Hunedoara in turn operated significant personnel cutbacks over the last twelve months from 2,200 at the end