Mittal Steel Galati, the former Sidex, is planning to become the biggest company in Romania this year due to a 3bn-dollar (more than 2.3bn euros) turnover, four times higher than the levels posted when the Indians took over in 2001.
The ranking of Romanian companies used to be dominated by petroleum company Petrom (2bn euros) recently acquired by the Austrians at OMV, who have their own growth ambitions, as well.
The international steel giant estimates 3.5bn-dollar (2.7bn euros) turnover in Romania for 2005. Besides the steel plant in Galati, the group comprises Mittal Steel''s operations in Hunedoara, Roman and Iasi, Narendra Chaudhary, Mittal Steel Galati chief executive told Ziarul Financiar.
"I believe the plant in Galati will reach 3bn-dollar turnover this year. There are several factors intervening here. Results could be helped by the market. Steel consumption in the world has increased so fast, especially on the Asian markets that demand has exceeded deliveries. If this trend continues, prices on the international market will stabilise at high levels," Narendra Chaudhary says.
Mittal Steel''s strategy is focusing on making the units acquired efficient, without leaving out possible acquisitions.
"If there are opportunities on the market, I don''t see why we shouldn''t make new acquisitions. There are no such opportunities now," Chaudhary said. Back in 2004, the Galati-based steel and iron plant posted 2.1bn-dollar (1.7bn euros) turnover, nearly double the turnover in the previous year, amid an increase in the steel price worldwide, where most of its output goes.
The Mittal Steel official declined providing profit figures for last year, merely saying that it was "an improvement" on 2003, when the net profit stood at 100 million dollars (88 million euros). The subsidiaries in Hunedoara, Roman and Iasi made 250 million-dollar (201 million euros) turnover together in 2004, which will double this year, as "2005 is the first full year when they are run by Mittal Steel," Chaudhary specified.
Chaudhary took the reigns of Sidex Galati after the privatisation of this plant at the end of 2001. He has successfully turned around one of the biggest industrial complexes in Romania that had earned the reputation of a "black hole" of the economy, making one million dollars in losses every day. Following takeover by the Anglo-Indian group of three more plants, Siderurgica Hunedoara, Petrotub Roman and Tepro Iasi, Chaudhary became the head of Mittal Steel''s operations in Romania.
Still, the changes at the top of the corporation held by Indian billionaire Lakshmi Mittal, one of the richest people on Earth, are starting to make a powerful impact in Romania, as well.
Mittal Steel is the new leader of the steel industry, following a row of mergers of Ispat International, LNM Holdings and International Steel Group, outpacing the European rival, Arcelor.
As a result of the creation of a superstructure, the group is reorganising its global operations, which generate about 30bn dollars in turnover. One of the recently announced steps is the split into three divisions, Europe, the Americas and the rest of the world.
adrian.mirsanu@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
