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Romanian plant Ductil Steel Otelu Rosu, indirectly controlled by Russian steel giant Mechel, is put on sale for a starting price of EUR 37.66 million, no VAT. According to a press release, the auction will be held on Thursday, August 13, organized by the insolvency administrator, RVA Insolvency in Bucharest.
The entire functional assembly of steelmaking from Otelu Rosu under the patrimony of Ductile Steel SA (production capacity of 850,000 liquid tonnes per year) will be sold.
Otelu Rosu was closed three years ago, hundreds of people lost their job. Currently, there are only 26 employees in the factory.
Otelu Rosu together with other three plants – Campia Turzii, Braila and Targoviste, but also Mechel East Europe Metallurgical Division SRL, were sold two years ago by Mechel to Bucharest firm Invest Nikarom for only EUR 52.
However, Mechel still controls the factories in Romania, given that these owe USD 400 million to Russians, representing working capital and debt repayment to banks.
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