ArcelorMittal Galati, Romania-based subsidiary of the world's largest integrated metals and mining company ArcelorMittal, has estimated that in 2010 its crude steel output will increase to 2.2-2.5 million mt from 1.7 million mt in 2009, if the current level of demand is maintained throughout the year, the Romanian daily financial newspaper Ziarul Financiar reports.
"The rise in demand from Turkey is strong. In Romania demand has also rebounded but at a slower pace. Many of our clients who had trouble meeting payments last year have solved part of these problems in 2010. Even with this rebound in demand lately we are still working at 35-40 percent below the 2008 level," ArcelorMittal Galati general manager Thierry Le Gal stated.
"Last year we faced a decline in sales and also a problem of competitiveness. Therefore, since mid-2009 we developed an adjustment program to achieve the productivity levels of our Western competitors, which sell in our main market, that of Turkey, at a lower cost than we do," Mr. Le Gal said.
As SteelOrbis previously reported, ArcelorMittal Galati will double its production capacity to more than 4.2 million mt of crude steel per year as of January 2011, when the upgrade of its blast furnace No. 5 will be completed following an investment of about €53 million.
In 2009, ArcelorMittal Galati's turnover declined by 58 percent to about €800 million from €1.94 billion in 2008, as a result of the drop both in demand for and prices of plate, the main product of the plant.