EMCC European Monitoring Centre on Change

Mechel Târgovişte

Company/Organisation:
Mechel Târgovişte

Geographic Location

Country: Romania
Region: Dambovita; Sud
Location of affected unit(s): Târgovişte (Sud region, Dâmboviţa county)

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.3 - Manufacture of other products of first processing of steel
Number Employed: 5000
Group: Mechel

Employment Effects

Announcement Date: 20-05-2005
Planned Job Reductions min: 2000
Type of Restructuring: Internal restructuring
Employment Effect Start: 20-05-2005
Foreseen End Date: 31-12-2010

Additional Information

According to the 2004-2010 national strategy for the restructuring of the Romanian iron steel industry, Mechel Târgovişte (Sud region, Dâmboviţa county) will decrease its employees’ number by 300 in 2005. By 2010, employment figures at Mechel Târgovişte will fall down to 3,000 jobs, starting from 5,000 in 2004. The special steelworks at Mechel Târgovişte is Romania’s largest metallurgical plant. It produces rolled products in carbon and alloy steel and forged and calibrated products for machinery and automobile manufacturers, the construction industry as well as the hardware, bearing and pipe industries. The business of the Russian group Mechel consists of two segments: mining and steel, comprising facilities in Russia, Kazakhstan, Romania and Lithuania. In addition, Mechel owns two trade ports and a railway company. In 2004, Mechel group had revenues of $3.64 billion , net income of $1.34 billion and profit of $907.7 million.