ArcelorMittal’s Romanian sales down 27% in 2007

The company’s sales in 2006 dropped 16 percent, from $2.19 bln year-on-year. The same report states that the group is concerned about the unstable political environment and economic reforms “which could not be continued” in Romania and Ukraine.

Furthermore, ArcelorMittal’s business is affected by the political environment, social and judicial challenges in several emerging markets on which it activates, said the report.

In Romania, ArcelorMittal controls the metallurgy plant ArcelorMittal Galati, ArcelorMittal Tubular Products Roman, ArcelorMittal Hunedoara, the local branch of ArcelorMittal Construction (AMC), and the Romportmet Galati port operator.

The group’s main operation on the Romanian market is ArcelorMittal Galati, former SIDEX, which posted turnover worth RON 12 bln (some $5 bln) in 2007, double year-on-year. ArcelorMittal will invest over €140 mln in the Galati steel plant in the coming three years to increase its production of rolled steel. The total investment budget in 2008 will amount to over €70 mln, similar to that last year.