Largest local steel plant, ArcelorMittal Galati, part of the ArcelorMittal Group, shows its willingness to produce pipes and steel sheet tubes for BRUA (Bulgaria – Romania – Hungary – Austria) gas interconnector, Bruno Ribo, CEO of ArcelorMittal Galati stated in an interview for news.ro, hotnews.ro quotes.
The French manager says the Galati plant is too big for the Romanian market, two thirds of the production of two million tons of steel in Galati being exported to a world market that has improved in the last year thanks to the European anti-dumping measures for steel in China.
“We are very interested in this project, which is important to us and is vital to our pipe and tube plant in Galati. About 80 percent of the pipe’s value comes from the steel side,” Ribo said.
Asked about how much steel would be used for the BRUA project, the manager estimates an amount of 110,000 tons of thick steel sheet, which can be produced without problems in Galati unit. Also on the platform in Galati, ArcelorMittal also has a pipe factory with a capacity of about 50,000 tons a year, which sells about 25,000 tons today.
“This project is carried out in two to three years. There is a consortium between the Galati pipeline plant and another unit in Greece, which is an important client of ours and is trying to attend this project,” Ribo added.
As regards the BRUA project, the ArcelorMittal Galati official suggested that he fears unfair competition.
“When you import the pipe from China, it is like importing steel from China, and this steel made in China is not charged fees as we pay for energy, or like the cogeneration charge that we pay. It is very difficult to fight in these conditions with such producers,” CEO of ArcelorMittal Galati explained.
Last year, the steel production in Galati reached 2 million tons, as in 2015, when it was recorded a 20 percent increase over 2014. For this year, Ribo estimates a similar production of 2 million tons.
According to Transgaz, the works for BRUA pipeline will begin in November this year and will be completed in 2020. The works will take place across 11 counties in Romania.