Romanian company ArcelorMittal Hunedoara will suspend production from September 5 for an indefinite period, parent company ArcelorMittal Kallanish reported.
"This decision, although difficult, reflects the company's current assessment of the deteriorating market situation, which continues to be driven by persistently high electricity prices, limited government support, and increasing competitive pressure from imports," the statement said.
"These factors have significantly affected the company's ability to remain competitive in the domestic, European and international markets. The order portfolio has declined sharply, volumes have decreased by almost 60% compared to 2024, which further reinforces the need for this long pause," the report says.
In light of these conditions, the company also expects an indefinite extension of the current economic unemployment measures after September 30. period.
The move is seen as part of a broader effort to manage the evolving situation responsibly and mitigate the financial consequences for employees, the group said. "ArcelorMittal continues to closely monitor market developments and will review its position as conditions change," the statement said.
The company immediately begins negotiations with its social partners.
Earlier, ArcelorMittal in Hunedoara suspended production from February 14 to March 31 due to very high electricity prices (see Kallanish passim).
Last December, the plant reduced production due to a lack of orders.
The Romanian firm took similar measures in 2022, also due to a lack of orders. In 2020, the company also temporarily stopped production due to the Covid pandemic.
The Hunedoara Electric arc furnace manufacturing facility, part of ArcelorMittal Europe's long products division, produces long products, billets and long products, employing 584 people and several contractors. The company produces 200,000-300,000 tons of steel per year.
Hunedoara remained part of ArcelorMittal after the steel group sold its flagship Romanian steel plant in Galac to Liberty Steel in 2019.
Svyatoslav Abrosimov Bulgaria
Kallanish.com
