Dorinel Umbrărescu, the largest road builder in Romania, is making a landmark acquisition that indicates it will soon put the steel mill Oțelu Roșu back into operation, which was bought in bankruptcy and closed for a long time. SMS, a German reference group in steel equipment, announced that it will deliver, to Oțelu Roșu, for the first time in Europe, the newest long product rolling mill in its portfolio, according to Economica.net.

"UMB Steel, a steel producer based in Bucharest, has contracted SMS group to deliver Europe's first Continuous Mill Technology (CMT 700) at its site in Oțelu Roșu, Romania. The new long product mill will be integrated into the existing steel complex and will operate in a continuous process, guaranteeing low carbon and high production efficiency. UMB Steel aims to meet the growing demand for sustainable construction materials, mainly supporting the UMB group's highway construction operations," according to SMS Group, a German-based multinational with a 150-year history that is one of the world leaders in steel plant technology.

"The innovative CMT technology modernises the plant's current infrastructure by enabling uninterrupted production of long products from scrap iron, continuously feeding cast semi-finished products from the steel mill directly to the rolling mill," the German company said.

Dorinel Umbrărescu, a well-known entrepreneur in the field of highway construction, acquired the steel plant Oțelu Roșu in Caraș-Severin County through his family-owned company Eco Wind Power.

The transaction was completed following an auction, at a price of almost RON 142 million (EUR 28 million), including procedural costs.

iulian@romania-insider.com

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