Steel plant Sidex Galati, which is owned by the world's largest producer of steel, Mittal Steel, last year saw 22% higher sales on the domestic market, a growth rate almost three times faster than the Gross Domestic Product.
"We are continuing to focus on the improvement of quality, production and productivity. Domestic sales grew at the remarkable pace of 22% last year, while Romania's economy is growing by about 5% a year. Major train car manufacturers have returned to us, international manufacturers of electrical home appliances have gained a position in Romania, and construction makes up a powerful sector", said Narendra Chaudhary, executive manager of Ispat Sidex. The company will change its name in the coming period to Mittal Steel Galati.
Sidex estimates last year's turnover at 2.1 billion dollars (1.7 billion euros), almost double the value for 2003.
Exports account for about two thirds of Sidex's production, while its main retail markets are the European Union (22%), Turkey (16%) and the American continent (5%).
The strong rise of the Galati plant was boosted last year by the higher price for steel on foreign markets as well as rising demand on the Asian markets. Sidex took advantage of these favourable conditions and its production capacities saw permanent growth.
Mittal Steel has expanded its business in Romania through the acquisition of other major industrial facilities such as Tepro Iasi, Petrotub Roman and Siderurgica Hunedoara. It now has a deal portfolio of 2.35 billion dollars (about 1.9 billion euros), making it the largest private company in Romania.
Chaudhary expects the turnover of these three branches to double this year.
"The three subsidiaries are about to become profitable. Together, they are major businesses. They will generate cumulated turnover of 500 million dollars this year," explained Chaudhary.
Mittal Steel, the company created in the wake of the global merger between LNM Holdings and Ispat International and which will soon buy the US' International Steel Group, has revenues of around 30 billion dollars per year, being the world"s largest steel producer. The craftsman behind this business is the billionaire of Indian origin, Lakshmi Mittal.
Mittal Steel will invest over 120 million dollars in Sidex in 2005, while investment projects started over the last two years are worth 200 million dollars.
At the same time, Mittal is running an investment project worth 90 million dollars for the finalisation of two furnaces in Galati.
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