It is reported that ArcelorMittal Galati has revised this year's strategy for the second time in 6 months as prices and orders for steel plunged to their lowest levels in the past 30 years and the first restructuring measures proved inefficient.

At the end of 2008, ArcelorMittal Galati estimated that it would lower production by up to 30% in 2009. However, the management said that 2009 estimates are based on using only 40% to 45% of the production capacity, which means a decline in annual steel production to 2 million tonnes from 3.9 million previously.

Company officials said that this drop in production is due to the fact that the number of new orders fell by up to 60%, deliveries plummeted, and steel prices halved, even on markets less affected by the crisis.

In addition to cutting production, the group’s management decided to close the Galati based coking plants and halt coke imports from the company’s Polish subsidiary, with 2,000 expected layoffs.

(Sourced from Business Standard)