Romania’s ArcelorMittal Galati posts €10 million loss in 2010

ArcelorMittal Galati, Romania-based subsidiary of the world's largest integrated metals and mining company ArcelorMittal, has posted a loss of €10 million for 2010, compared to a loss of around €200 million in 2009, local media have reported, citing ArcelorMittal Galati's CEO Thierry Le Gall.
 
"We had negative results also in 2010, when we posted a loss of €10 million. This is excluding investments, for which we have to pay €50 million, which further deteriorates our cash flow," Mr. Thierry Le Gall stated, adding that in 2011 ArcelorMittal Galati plans investments of some €60 million.
 
The negative financial results of ArcelorMittal Galati were driven by changes in the steel market, which in the fourth quarter of 2010 saw low prices, leading to the temporary closure of the plant's blast furnace No. 3, Mr. Le Gall said. He added that another negative factor in 2010 was the increase in commodity prices which disadvantaged producers who do not have their own raw materials, while benefiting competitors, such as Russia and the Czech Republic, which have these advantages.