Romania Might Sell Stake In Krivoy Rog Steel Plant To ArcelorMittal Group – Econ Min

Videanu reminded that Romania had invested large sums of money in the plant in Krivoy Rog before 1989, and stressed the country no longer affords to administer the plant.

„I sent a control body in the area a few weeks ago to draw up an inventory. Everything will go down the drain unless a decision is made. ArcelorMittal expressed interest in this matter and technical discussions will set off next week. Today, it was only a statement of intent, and the conditions of the parties involved are to be discussed,” the minister said.

Videanu added he did not know the exact value of Romania’s stake in the steel plant in Krivoy Rog and stressed it was highly important to make an accurate assessment of the plant and further make a decision in this respect.

According to Videanu, the investment in Krivoy Rog ensures part of ore resources used by ArcelorMittal at the plant in Galati, eastern Romania, and can contribute to double the plant’s steel output.

Romania had invested nearly $800 million in the steel plant in Krivoy Rog before 1989. Romanian authorities have repeatedly voiced the intention to sell the stake in the plant in Krivoy Rog.

Construction works on the plant in Krivoy Rog were set in motion by the former Soviet Union, back in 1983, but they were not finalized. After the collapse of the Soviet Union, Ukraine received a 56.8% stake in the plant, Romania received 27% of shares and Slovakia received an 18.2% stake.

ArcelorMittal owns steel company Kryvorizhstal in Ukraine, which was bought by Mittal Steel in 2005, for $4.8 billion.

ArcelorMittal, the world’s leading steel company, owns in Romania steel plants ArcelorMittal Tubular Products Roman, ArcelorMittal Galati, ArcelorMittal Tubular Products Iasi and ArcelorMittal Hunedoara, port operator Romportmet Galati, and the local unit of construction company ArcelorMittal Construction.