UMB Steel continues restoration of 220-year-old Oțelu Roșu steel plant in Romania

UMB Steel, a company controlled by the family of Romanian entrepreneur Dorinel Umbrărescu, has launched renovation works at the Oțelu Roșu steel plant in Caraș-Severin County, Profit.ro reported. The facility, one of the oldest industrial sites in Romania with a history of more than 220 years, was acquired by UMB Steel in December 2024 for RON 140 million (EUR 28 million).

According to project documentation cited by the publication, current works focus on rehabilitating the railway line serving the factory and securing the main production buildings and annexes.

“As a result of these works, production activity will not start. The purpose of the works is to make the existing constructions and equipment safe,” the documentation states.

UMB Steel plans to eventually retool the facility and restart steel production, including rolled profiles and related products. However, all production equipment has been idle since 2012, when the former plant ceased operations. In the years following the closure, the industrial platform suffered extensive damage due to vandalism and theft.

The restoration of Oțelu Roșu marks a significant investment move by Umbrărescu, best known as Romania’s largest road construction contractor through his UMB Group companies.

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