Mittal set to invest $8m in Roman this year

Mittal Steel Roman pipe producer (the former Petrotub), owned by Mittal Steel group, the world’s biggest steel producer, has earmarked investments worth $8 million (around 6.3 million euros) for this year, as undertaken in the privatisation contract.
Investments Mittal Steel made in Petrotub after taking it over in 2004 have contributed to the significant increase in the turnover of the company, which stepped into the black in 2005, after a three-year streak of losses.
“Mittal Steel is carrying out solid investment programmes targeting the Roman-based plant, pursuant to the commitments it made as part of the privatisation contract. In 2006, investment projects will revolve around 8 million dollars,” stated Regie Paul Aikaravelil, the general manager of Mittal Steel Roman.
Mittal Steel Roman in the first half of this year registered turnover worth 136 million euros, up 26% compared with the level reached in the similar period of last year. The company’s net income stood at 8.7 million euros, 87% higher than the figure reported in the first six months of 2005.
Last year, the company derived net income standing at 7.81 million euros, while its turnover surged by 70%, to 214 million euros.
“Mittal Steel Roman implemented a solid restructuring programme right after privatisation, and this programme has boosted the company’s turnover and performance. The company started using its production facilities at full capacity and embraced a policy of on-time delivery. All these were backed by positive conditions both on the domestic and the international pipe market,” explained Aikaravelil.
Rising crude oil prices led to higher pipe demand for drilling operations, also pushing prices up. Mittal Steel Roman has received a quality certificate from Anglo-Dutch giant Shell, which allows it to deliver steel pipes to Shell Oil Exploration.
“The spectacular increase in oil prices over the last two years has boosted drilling operations, which led to a higher demand for unwelded pipes. As a result, company product prices have gone higher during this period. Between 2004-2006, product prices have added around 20% on average,” says Aikaravelil. Mittal Steel manufactures steel pipes used in the extraction and shipping of crude oil and natural gas, as well as in civil engineering.