Mittal Steel Galati works on productivity

The restructuring plan that has taken Galati-based steel plant from losses of $350m (300m euros) to net profit worth $429m last year has turned Mittala??s business in Romania into a real benchmark for the other countries where the Indians run similar operations, with many of finalised processes being implemented abroad. The outcome of the restructuring plan has been above expectations, but not all the problems of the former Sidex plant have vanished once the Indians arrived. In the sector of flat steel products, a Romanian worker produces on average 250 tonnes/year, while in the case of the most efficient unit of Western Europe the average is of 2,500 tonnes per year. The group averages between 1,000 and 1,500 tonnes a year per employee. a??We will invest more to boost quality and in automation, but this is a long-lasting process. As regards productivity, one of our long-term objectives is to reach the threshold of 1,000 tonnes/year/employee, but I do not believe this will be possible sooner than 10 years from now. Still, we have here the advantages of low raw material and salary costs, in the context of a highly-skilled labour force, as well as a favourable geographical locationa??, Roeland Baan, Mittal Steela??s general manager for Europe, told Ziarul Financiar. ZF