ArcelorMittal has announced that it will suspend production at its Hunedoara plant in Romania starting September 5, 2025, citing rising electricity prices and increasing pressure from low-cost steel imports. The company also confirmed that technical unemployment measures currently in place will be extended beyond September 30 for an indefinite period.
According to the statement submitted to the Bucharest Stock Exchange on Tuesday, September 2, the decision was described as difficult but necessary due to the deteriorating market conditions.
Reasons behind the shutdown
The company outlined several factors driving the suspension:
- High electricity prices that continue to weigh heavily on operational costs.
- Limited government support for the steel industry.
- Intensifying competition from cheap imports, undermining competitiveness in both domestic and European markets.
In addition, the company reported that its order book has dropped by almost 60 percent compared to 2024, making continued operations unsustainable.
Impact on employees
ArcelorMittal confirmed that, during the temporary shutdown between September 5–30, employees placed on technical unemployment will receive 75 percent of their base salary. However, with the extended suspension, these measures are expected to continue indefinitely.
The company emphasized that discussions with social partners will begin immediately to mitigate the financial and social impact on its workforce.