The official said that the state could play an important part in the market’s rebound, by launching postponed infrastructure projects and using primarily raw materials from domestic production.
“In the first nine months of this year, the raw steel production fell to 1.8 million tons from 4 million tons. This is the lowest production registered in Romania in the past 35 years,” Dyshlevich told Business Standard.
“Now, banks and financial organisations are reluctant and afraid to invest in the metallurgic sector. I refer to crediting operating activities, considering that, at the current decline in markets and prices, metallurgical companies have no other sources for support. From the information we have, no company in the field has received credits, either from state or from commercial banks,” said Dyshlevich.
In order to survive, Mechel’s East-European division used the resources of the mother-company and focused on exports. According to data provided to Business Standard, Mechel Targoviste, the largest asset controlled in Romania, exported 27 percent of production this year, from five percent in 2008.
