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Otelu Rosu steel plant to be sold for EUR 19 M to a Turkish company

Russia-based Mechel will sell Otelu Rosu steel plant in Caras-Severin county to a Turkish company for EUR 19 million, mayor Luca Malaiescu stated, capital.ro informs, quoting mediafax.ro.

Moreover, the whole activity of the steel foundry will be moved to Turkey. Instead of the plant, an industrial park could be built.

”Otelu Rosu steel plant has not been sold yet, but there are very advanced discussions on this topic. (…) Mechel has debts of EUR 20 million to the state budget, and it will get EUR 19 million for the sale of the plant. The rest of EUR 1 million comes from Russians and thus they pay off debts. Everything Mechel owns in Romania is seized because of its debts,” Malaiescu explained.

According to him, the company that is going to buy the steel plant in Caras-Severin has come to the conclusion that the utilities such as methane gas and electricity are more expensive in Romania.

Otelu Rosu steel plant, covering 16 hectares, is shut down for five years.

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