Romanian Major Steel Producer Suspends Plant Operations due to High Electricity Prices

ArcelorMittal Hunedoara is temporarily suspending operations from 14 February until 31 March, with only 75% of basic wages paid to affected employees. The reason is high electricity tarrifs. “Considering the economic difficulties faced by the company, caused by very high electricity prices, and the need to take urgent measures to reduce losses and adapt the company to economic difficulties, including by reducing costs, and as a measure to protect employees, the Board of Directors of ArcelorMittal Hunedoara has decided to temporarily suspend the company’s operations for the period from 14. 02.2025 to 31.03.2025 and to pay 75% of the basic salary to the employees affected by this measure,” the company said in a statement, writes profit.ro. In December, ArcelorMittal Hunedoara also temporarily suspended operations, paying only 75% of wages. The suspension of operations was until the end of 2024. At that time, the decision was justified by the economic difficulties faced by the company, caused by the lack of contracts and thus production volume, as well as a measure to protect employees. Two years ago, ArcelorMittal Hunedoara extended a period of temporary suspension of its operations, limiting payments to 75% of basic wages to affected employees. The measure was also justified by a lack of contracts. Early last year, ArcelorMittal International, the world’s largest steelmaker, announced plans to cut 20% of its office staff as part of a $1 billion cost-cutting plan after reporting quarterly profits that beat forecasts. ArcelorMittal, which employs about 190,000 people, announced at the time that it would implement a one-billion-dollar cost-cutting programme over the next two years. This includes improving productivity, reducing the number of suppliers and cutting office staff by one-fifth.