“Productivity currently amounts to 335 tons of steel annually per employee, while the average productivity in the European Union is around 600 tons per employee,” Kochuparampil said. Salaries in the Romanian steel industry have a higher growth ratio, compared to ones in the EU, but this does not mean they will reach the European average soon. “In the EU, salaries rose 2-3 percent in the past 10 years, while in Romania the increase was 14 percent this year alone, but in order for salaries to reach European levels labor productivity must also increase,” said ArcelorMittal Galati’s CEO.
Kochuparampil added there are two ways to increase labor productivity. “The first way is to improve production capacities, and we have an ambitious plan for this. The second way is related to labor restructuring and reorganization.”
ArcelorMittal, the largest steel producer worldwide, is to invest more than $200 million (€140 mln) in the Galati plant in the next three years, to increase heavy plate production. The investment budget will amount to $100 mln (€70.4 mln) in 2008, the same as in 2007, Kochuparampil said. According to data provided by steel plants to the Ministry of Economy and Finance, the Tenaris Cãlãrasi steel plant has the highest labor productivity in Romania, with each employee producing 1,000 tons. ArcelorMittal Galati ranks second, with 277-280 tons/per employee, while TMK Resita holds third place, with 227 tons/per employee. ArcelorMittal Galati posted some €1.1 billion in turnover and €30 million in net profits in the first half of 2007. The Galati plant is ArcelorMittal’s most profitable unit in Romania. The group also owns production units in Iasi, Roman and Hunedoara.
Worldwide, the group is responsible for 10 percent of steel production, with 330,000 employees in more than 30 countries.
