ArcelorMittal Galati, the biggest steel plant in the country, controlled by Indian billionaire Lakshmi Mittal will double its production capacity to more than 4.2 million tonnes of liquid steel as of January 2011, when the upgrade of a furnace is completed following an over 50 million-euro investment.
The number five furnace was closed in October 2008 as a result of the drop in orders caused by the world economic crisis and is now being upgraded, a process scheduled for completion early in 2011.
"At present, with the furnaces still in operation the annual maximum output of ArcelorMittal Galati amounts to 2.2 million tonnes. The new furnace, to become operational in January 2011 will have a 2 million-tonne capacity," the company's management said.
From 2006 through 2008, the output of ArcelorMittal Galati, whose turnover stood at 1.84 billion euros in 2008, maintained at 4 - 4.5 tonnes of liquid steel per year, that is twice the maximum level at this moment, but the company officials say the plant may break even.
The representatives of the company did not provide any information on the financial results of 2009, but in midyear had said they were operating at a loss, while sales had gone down by 70% compared with the year before.
From the 2004 through 2008, the steel plant held by billionaire Mittal posted cumulated profits worth 645 million euros, and losses worth 44 million euros only in 2005.
The management of ArcelorMittal estimates that following the ongoing 53 million-euro investment the variable costs of the furnace will go down by 12 euros per tonne of liquid steel, so that when it becomes operational, the plant will save 24 million euros a year.
Thierry LeGall, the CEO of ArcelorMittal Galati and of Flat Carbon Europe - South East Division said that the steel production of the plant was on the rise, having gone up about
