Romania's UMB to invest 300 mln euro to restart steel mill - PM

"The investment will ensure the production of materials needed for infrastructure projects in Romania," Ciolacu said in a social media post on Friday, following a government visit to the non-operational steel mill. The operationalization of the plant located in the western county of Caras-Severin will create over 600 jobs.

In February, local news outlet Ziarul Financiar reported that Romanian businessman Dorinel Umbrarescu, the owner of UMB Grup, acquired the Otelu Rosu plant for 12 million euro with the intention to produce metal structures necessary for the group's construction activity.

UMB Grup comprises construction and road transport companies SA&PE Construct, Spedition UMB and Tehnostrade. Consortiums including the three companies have won multiple road infrastructure contracts in recent years.

The Otelu Rosu steel mill was sold numerous times in the last thirty years. It entered insolvency in 2013 when it was owned by Ductil Steel, part of Russian group Mechel, and then once again in 2023, when it was owned by Romanian company Laminorul Danube Metallurgical Enterprise, local information outlet Club Feroviar reported last year.

($=0.9235 euro)