Marcel Ciolacu, the prime minister of Romania, has announced that Romanian entrepreneur Dorinel Umbrarescu, owner of UMB Group, a company primarily involved in construction, transportation and petroleum sales, will invest €300 million to bring the Otelu Rosu steel mill back into operation.
Although the steel mill has not been in operation since 2013, it was able to produce 850,000 mt of liquid steel annually and produces steel pipes with low, medium, or high carbon content, as well as alloy steel for the subsequent lamination of reinforcing bars, wire, and special steels.
“The UMB Group, managed by Mr. Umbrarescu, will invest over €300 million in the factory, creating over 600 employment opportunities. The investment is intended to ensure the production of materials required for infrastructure projects in Romania,” the prime minister stated.
According to the details of the announcement, with the start of the plant, the construction segment will benefit from the local mill’s production and will offer more job opportunities.
Furthermore, according to industry participants, the anticipated resumption of the Otelu Rosu steel mill may potentially boost local production and building projects. Currently, Donalam SRL, the Romanian subsidiary of AFV Beltrame Group, is the only manufacturer of rebar in Romania.
“Dorinel Umbrarescu is serious and will undoubtedly restart the mill, which will benefit the local market. However, I believe they will focus more on their own side and manufacture large volumes for their construction projects,” a Romanian trader commented to SteelOrbis.