Steel Plant Sidex

SA Galati
TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

Lets start with the beginning

The history of Galai was marked in 1961 by a
pivotal moment: start construction of the largest
steel mill in the country and one of the largest
and most modern at that time in Europe.
In terms of location in territory in Galati were
formed three main industrial areas:
1. Zona - ISPAT.SIDEX, construction companies
and industrial transport.
2. Zona East - ports and a number of business
units related to port activity.
3. Zona industrial north - furniture factory naval
and economic units deposits.

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

The Big
opening
Nicolae Ceausescu, cut the inaugural ribbon plant in September
1966
Production began in July 1968 when the components required for
the production of steel were assembled and led the first steel
Steel mill product no. 1.
Activity grew at a steady pace in 1972 the plant with 40,000
employees - more than 50,000 in total, including industrial units
in the vicinity.
A study in 2011 showed that two thirds of Galati worked or used
to work in combined or associated factories. According to official
records, the maximum production was reached in 1988, with 8.2
million tons of steel worth $ 7.2 million (money weather).
In the early 1990s the plant cause massive pollution of air, soil
and water in Galati.

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

Over the years

The Communist regime was overthrown in 1989 and in 1991
the plant became a joint stock company under the name of
Sidex Galai. This was taken in 2001 by the Romanian State
by the company Mittal Steel plant and the debts were
cleared.
The steel plant is located near the town of Galati, on the left
bank of the Danube, 80 miles from the Black Sea. Due to its
geographical position, Galai is an important industrial and
commercial center, a place where many roads intersect trade
linking the CIS and Western Europe, reaching the Balkans. In
1994 he was created free economic zone city of Galati.
Galai is the largest steel plant in Romania and is a mainstay
of the city's economy. It is also the only one who does not use
electric arc furnaces, relying instead on iron ore and coal to
produce a special type of steel, more flexible and suitable to
produce sheet steel.
In the 80s Galati steel sector had a record 60% of the national
production.

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

The numbers
When Mittal Steel acquired Arcelor in 2006 to become
ArcelorMittal, the plant changed its name to
ArcelorMittal Galati. The number of employees
decreased from 27,600 in 2001 to 8,700 in 2011 and
production fell to 3.5 million tons in 2011.
The main activity of SC Mittal Steel Galati as code
CAEN - 2710 is to manufacture hot rolled and cold steel
Thick and thin sheets, including galvanized, billets and
blooms of re-rolling, pipes
large diameter longitudinal welded, machinery, spare
parts for metallurgy,
products resulting from the technological, coke-chemical
products, oxygen, nitrogen, argon, etc. Steel products
are used in the following industries: automotive, marine,
construction, finished products obtained by rolling and
forging, pipe fabrication, wire fabrication.

Number of employees:
(thousands)

YEAR
employees

2013[6] 2009[7] 2008[3] 2001[3] 1999[8]

7.3
9.3
13.65
27
31

Financial Results: (millions

euro)

2008[5] 2004[1]

YEAR

2009[9]

TURNOVER

845

1.95

NET INCOME

-334

165

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

[9]

[2]

2.100
($)
450

2003[1] 2001[1]
1.200
($)
-

800 ($)
-

The events
1960 - A decision was taken on the appearance of a new steel mill in Galati
1961 - Construction works started
1965: Begins construction Galai steel plant, which would become the symbol of the socialist
country, associated with industrial independence from the USSR.
1966 - The first batch have been developed. The plant begins to produce using a sinter plant, blast
furnace (1,700 cubic meters) and a steelworks
1967: Opens the Steel Galati. The city had 156,000 inhabitants and 73,000 employees industrial
colossus combined
1991 - The plant is a joint stock company and renamed SIDEX
2001 - LNM buy state shares from SIDEX
2006 - Mittal Steel and ArcelorMittal merged - Complex name change in ArcelorMittal Galati
2009 - ArcelorMittal Galati is the center of Flat Carbon Europe - Southeast Division
2014 - ArcelorMittal Galati and ArcelorMittal Skopje form a business division in South East Europe
SIDEX S. A. Galai is the largest integrated steel plant in Romania flux. He made 75% of Romania's
steel production and at the same time, provides 95% of flat products in the domestic market. Over
40% of its output of SIDEX S. A. is exported worldwide.
In November 2001, a majority stake in SC Steel SA Galati was taken ISPAT group. This combination
is the largest steel producer in Romania and the second largest in Central and East Europe..

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

The negative
point
Our city, like many other cities in the world is polluted. Plant
"Sidex" removes toxic gases into the atmosphere, smelly, that wind
carries them to the city.
The main source of air pollution is SC ISPAT.SIDEX SA Galati, located
on the platform Smrdan, 3 km west of Galati Integrated
steelmaking is, in terms of energy, very effective, but requires the
existence of many sources pollution, especially air.
Once the nature of processes deployed, sources of ISPAT.SIDEX SA
Galati are divided into:
sources that emit pollutants as a result of combustion processes;
sources that emit various powder compositions from transport
and processing of raw materials.
Privatization plant in July 2001, the sale of the biggest
"Siderurgistul" worldwide - ISPAT Indian group Mittal - not brought
them no joy Galatians. In contrast, the combined jobs are becoming
fewer (profit should increase, right?), Work accidents are racing,
and the city is still polluted with the famous "steel exhaust.

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

The big robbery

It begins when the robbery which would be supervised even plant
managers. Under the pretext that he would be able to sell one product, the
directors bring to Sidex with legal papers, company tick - intermediaries
who sell steel abroad in exchange for a commission. 1400 companies tick is
rich by the plant in 2000-2001
Beyond the business of the board, the most damaging of the combined
businesses were conducted during 1997 - 2000, the company Sidex
International.
Plant management board was sold at prices below the cost of production.
Dummy companies were only to buy this board and to resell at much higher
prices. Profits go into their pockets, and the transaction was made even
plant deposits.
In 1999, after the business with Sidex International, the plant is the largest
black hole in the state budget, with $ 3 billion debts and losses.
While Sidex International company grows, the plant collects waste and get
to sell steel at a price of nothing.
In 2000 Sidex Galati almost dies days.

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

The worst deal,2001

Adrian Nastase Government decides to sell the plant because it would have meant
the collapse collapse of the entire Romanian economy. So-called rescue comes from
Indian Lakshmi Mittal, owner of Mittal Steel, one of the richest men in the world.
The firm also participates privatization Romanian and one in France. Competitors
retire and Mittal wins. SIDEX is Arcelor Mittal.
Part of the privatization agreement is secret. What is officially known is that the
Indians would have had to pay 77 million euros to get the plant.
The rest would be paid only if the combination would have won a lawsuit older
Sidex International, his former business partner. It claimed to plant 52 million
dollars, a debt. Combined with Sidex International unsuccessful, so the Indian Mittal
no difference Romanian state pays 52 million dollars. The money goes directly to
the company of the Mittal London.
With the fall plant collapses and one of the largest cities. Galati have a whole
industry that depended on the combined transformed now in ruins or replaced
commercial spaces.
Privatization SIDEX proved damaging business for Romanian State. Willingness of
governments in 2001 and 2005 did not use in the end anyone.
What alternative have Romanian state? The answer I give Ukrainians, who sold a
steel mill of the same size with 4.7 billion dollars.

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

News
He was robbed, tongs and turned into the biggest hole in the state budget, then
be privatized and given free Indian Mittal, one of the richest people on earth.
Today, former steel mill operating at a loss Sidex five years and nothing seems to
help him recover.
This year, the disaster is closer than ever. Some of the plants built by the
communists in the city of steel were cut, torn in pieces and then melted to
produce steel. ArcelorMittal management representatives say the metallurgical
plants are too old anyway, unions are scared that it closes slowly. Workers, 8,700
who left, did not know whether to give up the metallurgy and grab something
else or not. Now the primary flow (coke ovens, blast furnaces and steel mills) is
almost completely closed.
Today, with all investments, the plant survives due to secondary flow, ie the mills.
In Galati 7,000 people still working and increasing energy prices is about to send
the plant for scrap.
You can not talk about Galai not remember Danube fish and not finally, the
ArcelorMittal steel mill. A recent sociological study showed that of the 300,000
inhabitants of the city, 200,000 have or had, in one way or another, linked with
the steel company. They or their immediate family I have either worked there or
still working, or working on related companies combined cord.
TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE

BIBLIOGRAFIE:

Referate.ro
Wikipedia.ro
AGENDA LOCAL 21 PLANUL LOCAL DE
DEZVOLTARE DURABIL A MUNICIPIULUI
GALATI
Violeta Pucau Politici ecologice Note
de curs Editura Universitii Dunrea de
Jos Galai 2001

TONITA VALERIAN UNIVERSITATEA DANUBIUS 2014 STIINTE ECONOMICE