UMB Group plans to invest EUR 300 million to reopen Otelu Rosu, one of the oldest steel plants in Romania, thus creating around 600 jobs. ‘The investment will enable the production of materials used in infrastructure projects in Romania,’ according to Romanian Prime Minister Marcel Ciolacu. UMB Group bought the steel plant earlier this year, allegedly for EUR 12 million, following the bankruptcy of the previous owner. The company believes that this investment will increase Romania's steel production capacity and make a significant contribution to the country's economic growth and employment.
Otelu Rosu was previously acquired by Polish financial group Sunningwell International Polska in 2019, which had planned to restart Otelu Rosu and build rolling mills, but these plans could not be realised due to the bankruptcy of the investor last year.
Otelu Rosu is equipped with an EAF with a capacity of 850,000 tonnes/year and is capable of producing low, medium and high carbon and high alloy steel blocks for long rolling.
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