However, this was the smallest advance posted among analyzed companies, and the turnover was much lower than the over EUR1.1 billion the market had expected.
One explanation for the more fragile turnover increase of ArcelorMittal, which holds over 40% of the Romanian steel market, is that its customers include shipyards – one the few industries to have registered turnover declines in 2010.
On the other hand, the plants of the Mechel Russian group, namely Mechel Targoviste, Ductil Steel Buzau, Laminorul Braila and Mechel Campia Turzii, last year saw combined turnover double, to EUR621 million. Mechel is the second-largest steel group in Romania.
With a 6.3% net margin and a EUR15.9 million income, Silcotub Zalau, part of the Tenaris group, is the most profitable steel company among major companies in Romania.
One of the explanations is that the group, headquartered in Luxembourg, built a steel plant almost from scratch on the platform of former Donasid Calarasi complex, which was closed at that time, and hired only as much personnel as it needed, unlike the other plants, where, even after recent years’ layoffs, there is still a personnel surplus.
This is why Tenaris’ productivity is very high, close to the European average of 1,000-1,200 tons/employee. As a matter of fact, Silcotub is the only complex to have hired around 350 people in the past two years.
Steel product trader Mairon Galati, controlled by businessman Costel Miron, posted EUR132 million in turnover last year, up 65% year-on-year and increased its profit six times, to EUR6.4 million.
Businessman Dan Vasile, who owns two companies in the field, namely Dan Steel Group Beclean and Dan Steel Group Negresti Oas, last year reached EUR102.9 million in turnover, 22% higher year-on-year and net cumulated profit of EUR2.3 million.
The companies part of the Profiland group controlled by the Lisinschi family also boosted turnover by around 30% last year to EUR58 million.
In the first seven months of 2011, steel output rather stalled domestically and globally. Romania’s plants rolled out around 2.2 millions of raw steel in the first seven months of this year, 0.6% less than a year ago, after steel production largely stalled in the past year, according to data provided by the World Steel Association.
The main companies in the industry listed on the stock exchange, Mechel Targoviste (COS.RO) and TMK Artrom Slatina (ART.RO) posted over 43% increase in turnover in the first half. Artrom even stepped into the black, making 59.6 million lei (EUR14 million) in net profit compared with RON62.7 million losses in the same time last year. On the other hand, the losses of the plant in Targoviste went up by 32% to RON63.7 million.
(EUR1=RON4.2488)
(English version by Catalina Apostoiu; Editing by Loredana Fratila-Cristescu)