Romania Must Send EC Data On Four Steel Plants By Jan 20

Thus, Romania met all its obligations in the EU Accession Treaty, namely it did not grant state aids after 2004 and closed down all the obsolete production capabilities in the steel sector, the Economy Ministry said in a statement Wednesday.

In the case of the four plants Mechel Targoviste, Mechel Campia Turzii, ArcelorMittal Hunedoara and ArcelorMittal Galati there are pending several issues mainly on strengthening the long-term economic-financial viability related to labor productivity, manufacturing costs, energy and raw material consumption, as well as investment focus on technological and labor objectives, the statement also read.

The information will be drafted by the respective companies and sent by the Economy Ministry to the EC until January 20, 2010.

Based on the EC Accession Treaty, the restructuring and viability process of Romania's steel sector should be monitored between 2004 and 2008. The steel companies drafted in 2004 individual viability plans based on which they undertook that any received state aid will be used in an efficient way to reach European long-term viability parameters.

The plants Mechel Targoviste and Mechel Campia Turzii are held by Russian group Mechel, while ArcelorMittal Hunedoara and ArcelorMittal Galati were privatized by UK-based giant ArcelorMittal Group.

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