According to local media reports, ArcelorMittal Galati, Romania-based subsidiary of the world's largest integrated metals and mining company ArcelorMittal, will invest about €53 million for a 12-month modernization of its blast furnace (BF) No.5.
Accordingly, as a result of the modernization ArcelorMittal Galati's BF No. 5 will be able to produce two million mt of pig iron per year, and thus will double the company's annual pig iron production to over 4.2 million mt. Currently, two BFs operate at ArcelorMittal Galati, resulting in pig iron production of 2.2 million mt per year.
The modernized BF is scheduled to be re-started in early January 2011.
"The investment in question will contribute to decreasing the difference between the variable costs of ArcelorMittal Galati and ArcelorMittal's units in Western Europe, thereby increasing the mill's competitiveness," ArcelorMittal Galati's CEO Thierry le Gall stated.
ArcelorMittal Galati's BF No. 5 was closed in October 2008 as a result of reduced orders from the industry amid the global crisis.
In 2010, ArcelorMittal Galati plans to increase its capacity utilization level to 65 percent compared to 40 percent in 2009.