Saturday, March 14, 2009

ArcelorMittal Romanian unit to cut output

BUCHAREST, March 13 (Reuters) - A Romanian unit of steel maker ArcelorMittal (ISPA.AS) will cut output and put its staff on technical unemployment as of April 1 to cope with a dramatic drop in demand, the group said on Friday.

ArcelorMittal Galati will send its 12,500 employees into technical unemployment in 10-day rotating shifts.

"The measure will be applied as of April 1 ... to adjust the company's activity to hard economic conditions," the firm said in a statement. "The market has recorded a dramatic fall in demand, which has forced us to make this decision."

Local media quoted union representatives saying employees will receive 75 percent of their monthly wages during the 10-day work halt. Arcelor Mittal owns several plants in Romania. (Reporting by Luiza Ilie; Editing by David Holmes)

No comments: