According to an official document detailing the negotiations between ArcelorMittal and the Romanian government, the steelmaker also asked to take over electricity networks, keep the local steam provider in CET Galati working, changes in the gas market liberalization calendar, lower energy cogeneration taxes, and regulations on the use of low quality metal products imported at dumping prices.
ArcelorMittal group, the world’s largest steel producer, owned by Indian billionaire Lakshmi Mittal, has two steel mills in Romania, in Galati and Hunedoara, two pipe factories, in Iasi and Roman, port operator Romportmet Galati, and a division of ArcelorMittal Construction.
Romanian Prime Minister Victor Ponta met with Mittal in May and last week and said the government was working to find sustainable solutions in the energy sector after Mittal said the group was considering pulling out of Europe over high energy prices.
Economy Minister Varujan Vosganian, on the other hand, said he doesn’t trust foreign companies seeking sate support without offering anything in return and any investor has responsibilities, adding ArcelorMittal has already benefitted from several forms of state aid.
According to the document, ArcelorMittal’s main concern is energy and the company requested a lowering of the cogeneration tax, after the temporary postponement of the number of green certificates granted for green energy production. The company also asked to lease the plants internal electricity network, which belongs to electricity company Electrica Muntenia Nord, citing monthly costs of EUR8 million. Electrica Muntenia Nord rejected the lease proposal saying a potential takeover would diminish the utility branch’s revenues but the state privatization office OPSPI has asked the electricity supplier to consider renting its electrical lines to ArcelorMittal. A response from Electrica Muntenia Nord is now pending.
ArcelorMittal Group operates in the steel and mining industries in 60 countries and has around 260,000 employees worldwide.