Metinvest plans to sell $ 200 million worth of steel products in Romania

Ukrainian mining and metals company Metinvest recently opened a sales office in Romania, Metinvest Carpathia, and hopes to achieve $ 200 million in sales this year. This is due to the fact that Romania is expected to increase steel consumption due to new infrastructure projects and the country's economic growth.

Metinvest in Romania hopes to be a key player in the steel market.
Metinvest is already known as a supplier of steel on the Romanian market, exported to Romania by Metinvest Steel Works from Ukraine, Bulgaria and Italy. By opening this branch, the group wants to consolidate its presence in the market and strengthen its relationships with local customers and attract new ones. The Group noted that Romania currently has one of the lowest per capita consumption of steel products in the European Union, which indicates a great market potential.

According to the World Steel Association, total steel demand in Romania was approximately 3.4 million tonnes in 2013 and is set to rise to 3.7 million tonnes this year. The construction sector is expected to begin recovery this year, amid positive economic development. In Romania, Metinvest mainly sells steel products for the construction industry, but also has customers in mechanical engineering and pipe production.

Metinvest's decision to open an office in Romania falls on a difficult period in the situation of the local metallurgy. ArcelorMittal, the largest producer with a steel mill in Romania, has cut volumes and is suffering losses, while the Mechel group, which had five steel plants in Romania, has given them away almost free of charge.

Romania currently produces less than 3 million tonnes of steel per year, half of what was produced in 2007. In 1989, Romania's steel production was more than 14.4 million tons per year. The country exports about 2.2 million tons and imports 2.6 million tons of steel per year.