ArcelorMittal Galati, the largest steel producer in Romania, will close for at least two months one of its two blast furnaces still active, according to company representatives quoted by Mediafax newswire. Also, all 9,300 of the company's employees will receive a 20-day mandatory holiday  in the next three months.

“ArcelorMittal confirms that it will adjust its production due to market conditions in the region, especially in Turkey. For at least two months, starting November 19th, the factory will operate with just one furnace”, Dorian Dumitrescu, the spokesman of ArcelorMittal Galati said on Thursday.

ArcelorMittal Galati posted its highest loss ever last year, of RON 1,4 billion (EUR 334 million) and a 50 percent drop in sales, to RON 3,58 billion (EUR 845 million).

However, the steel industry seems to be recovering this year after the sharp decline in 2009. Romania's crude steel production grew to 350,000 tonnes in August, 43 percent higher than in August 2009, according to official statistics. ArcelorMittal Galati makes about 70 percent of the internal steel production.

ArcelorMittal Galati closed another blast furnace and a steel mill in 2008 and last year it also closed its coke plant and started to import the coke. The company fired about 5.000 of its employees since 2007.

ArcelorMittal Galati is part of ArcelorMittal group, the largest steel producer in the world, which is controled by Indian billionaire Lakhsmi Mittal.

editor@romania-insider.com