Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Mittal Steel Roman, located in Roman (Nord-Est region, Neamţ county), produces a variety of seamless carbon and low alloyed steel pipes — including casing, tubing and line pipes. The company's products are used in the oil and gas, fossil fuel and nuclear energy, machine engineering and civil engineering industries. Established in 1957, the company was acquired by Mittal Steel Group in December 2003. It has an annual capacity of 500,000 tonnes and employs around 3,100 people.
The Mittal Steel Group has initiated a voluntary redundancy programme in three of the four companies held in Romania: the steel works in Hunedoara (Vest region) and the steel pipes factories in Roman and Iaşi (both in the Nord-Est region).
Employees will be made redundant only if they fill in a standard application form to the management. Applications will be approved selectively, the management reserving the right to turn down applications, depending on company interests.
The ‘voluntary redundancies' programme started on 9 May 2005 and employees are free to submit their applications to be made redundant no later than 23 May 2005.
The programme initiated by the Mittal Steel Group involves providing a compensation of 80 to 100 million lei (€2,200 to €2,750) depending on length of service. In addition, employees who have been with the company for over 15 years will continue to receive their monthly wages for a period of one year and those with a shorter length of service will receive the same monthly wages for a period of 6 to 9 months, period in which they will not be entitled to any unemployment benefits. All costs will be covered by the company.
The trade unions at Mittal Steel Roman estimate that at least 500 of the 3,000 employees will choose the redundancy alternative.
Mittal Steel Group is the new world leader of the steel industry, following a raw of mergers of Ispat International, LNM Holdings, and International Steel Group, outpacing the European rival Arcelor. Mittal Steel's strategy is focused on making the units acquired efficient, without leaving out possible acquisitions.
The subsidiaries in Hunedoara, Roman and Iaşi had a €201 million turnover together in 2004, which is to double in 2005. However, the bulk of the Mittal Steel's business in Romania comes from the Galaţi unit, where around €2.7 billion turnover is estimated for 2005.
Eurofound (2005), Mittal Steel Roman, Internal restructuring in Romania, factsheet number 61866, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/61866.
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