2015 was an important year for the Galati Steel Plant. In terms of operations, it was a year when we could see the positive effects of our transformation. We have increased our output at 2 million tonnes, thanks to the massive technical upgrades of our Blast Furnace no. 5, which is now one of the best in Europe. This was reflected in our economic figures: we achieved positive operational results. But let’s remember that these good results came after 17 consecutive quarters with negative results, offset by the constant Group’s support in continuing to invest.
The Group’s support for our Plant must be understood as the best sign of commitment for Galati and Romania. But our 4th quarter was again negative due to the collapse in prices, due to massive imports especially from China. The situation was extremely difficult and necessitated the imposition of severe correction measures to adapt to the situation, affecting our people who participated in this effort.
In front of this trade crisis, it is key that European states show a common view and take actions to secure the future of steel industry in Europe. Policymakers in Romania can influence this common position a great deal; Romania should play its role and offer a competitive and stable basis for our activity, in particular by offering competitive and sustainable energy costs.
In 2015, we started to receive the fruits of our transformation process, which we started in 2009 and re-shaped in 2015 for a new wave (the third one) named ARC 2020E – Acceleram Reusim Consolidam pentru Excelenta. We need to continue our transformation not as a temporarily tool, but as our way of life to adapt the realities of today: our future will not look like our past.
We are now better adapted for the current economic paradigm and we will continue to improve our competitive position to achieve
sustainability. We know clearly our next steps and the challenges ahead, and these are no minor things. But, knowing the people we are working with, I am confident we will succeed.
This is our commitment to our community. We contribute 28% to Galati county’s GDP and we think our responsibility is equally significant.
And this report – which I encourage you to read –reflects our 2015 efforts to ensure our sustainable long term future.
Chief Executive Officer,
“Our transformation is not a tool, but a way of life, because our future will not look like our past”
Bruno Ribo, Chief Executive Officer of ArcelorMittal Galati