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«ArcelorMittal Galati» plans to increase production volumes

Plant «ArcelorMittal Galati», is the leading Romanian steel companies and is part of the «ArcelorMittal» Group expects a 15 percent increase in production volumes in the next year. The prerequisites for this kind of fun is a weighty technical modernization of production and the anticipated significant investments. Over the past 5 years, the company plans to produce the first increase after a forced reduction of output and the closure of certain production lines in the wake of the crisis. Before the crisis the production of «ArcelorMittal» Galati for the year provided more than 3 mln. Tons of steel, after the crisis the yield ranged from 1.6 to 1.7 mln. Tons per annum. Experts «ArcelorMittal Galati» intend to ramp up production in 2015 to over 2 million. Tons. Such a positive outlook provided the measures taken by government authorities, aimed at restoring the competitiveness of the domestic business area, as well as providing an affordable cost of electricity and natural gas.

Decisions must consistently act in the long term, because the conditions of the company are quite complex, given the continuous increase in electricity and gas costs and low demand for the products on the world market. At the time, «ArcelorMittal» Galati forced to shut most of the blast furnaces were also made to staff reductions, which served as the impetus for the emergence of rumors about a complete cessation of activity in the city. The company persistently denies rumors of this kind, claiming that Galati is a key point, which tied the Group's strategy with respect to the European market. Investments of $ 10 million. EURO, invested in the Romanian production, proving the interest of the parent company in the prosperity «ArcelorMittal Galati».

In general, «ArcelorMittal» analysts expect an increase in steel demand on the part of European consumers by 3−4%. In the second half of the year and you can expect an increase in demand from the US within 5−6%, despite the fact that in the first half of 2014 demand for steel products has fallen sharply due to adverse weather conditions. China is showing signs of stabilization, which can ensure the growth of domestic demand by 3% to 5%.

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