DONALAM SOUNDS THE ALARM: TO AVOID COLLAPSE, ROMANIA’S STEEL INDUSTRY NEEDS IMMEDIATE STATE INTERVENTION!

The steel industry is going through its toughest period in decades, facing challenges that threaten the survival of local producers.   The recovery of Romania’s steel industry depends on the state’s ability to protect it from unfair competition from non-EU countries.   State aid for investments and energy price compensation is essential for restoring the competitiveness of Romania’s steel industry.   Donalam, a member of the AFV Beltrame Group, one of Europe’s leading producers of special steels and rebar and the owner of the steel plants in Calarasi and Târgoviste, is sounding the alarm to authorities regarding the crisis in the steel industry. The sector is experiencing its most difficult period in decades, facing challenges that endanger the survival of local producers.   Massive imports of cheap steel from outside the EU (Turkey, China, Egypt, and the Maghreb states) have surged by 27% in the past year, suffocating European producers, who are required to comply with strict environmental standards and bear significantly higher production costs. While the European Union passively watches the collapse of its steel industry, other countries, like the US and China, are taking concrete measures to protect its producers. For instance, the 25% tariffs imposed by Donald Trump on steel imports, with no exceptions or exemptions, demonstrate a strategic approach to safeguarding the domestic economy. The EU, on the other hand, remains vulnerable, lacking comparable protective policies, exposing its industry to unfair competition and massive dumping. Without urgent action, Europe risks becoming dependent on imports from outside the bloc, to the detriment of its own producers.   At the same time, industrial consumers in Romania pay the highest final electricity prices in the EU, a real competitive handicap. In January, the final energy price paid by an industrial consumer was €139/MWh, while in Italy it was €71/MWh, in France €56/MWh, and in Bulgaria, it was capped at €108/MWh. Given that in Romania, by mid-February, we are witnessing a dramatic increase in the spot price of active energy to approximately €200/MWh, the urgent need for the implementation of a solid state aid scheme capable of genuinely protecting the industry against the explosion of energy prices becomes evident. We emphasize that Romania is the only EU country where such state support does not exist. Also, the war in Ukraine and global instability have led to a dramatic increase in raw material costs and severe supply chain disruptions, significantly impacting production. The absurdity reaches a new level: Romania exports enormous quantities of scrap metal to non-EU countries every year, only to later import finished products made from the same material at dumping prices.   Donalam Defies the Crisis: Millions Invested in Romanian Steel   Despite an unfavorable market, Donalam remains committed to its long-term strategic objectives for Romania, focusing on investments in equipment modernization and increased production efficiency. These efforts aim to ensure the continuous supply of this essential material for Romania’s development projects—steel. Although the company is facing financial losses, Donalam invested nearly €20 million in 2024 alone, using its own resources. This includes €16 million in the Târgoviste plant—the only national producer of rebar steel—and €4 million in the Calarasi special steel production unit.   "Even though we are experiencing financial losses, we are not giving up on our planned investments. These are a clear testament to our commitment to transforming Donalam into a leading steel producer in Europe, both in the special steels segment and in rebar steel," states Carlo Beltrame, CEO of Donalam.   State Support and Protection – Essential for the Future of the Steel Industry To tackle current challenges, Romania’s steel industry urgently needs measures to ensure competitiveness and long-term sustainability, similar to those implemented in other European countries (Italy, Slovakia, Sweden, the Czech Republic, France, Germany, and Switzerland).   "What we want to emphasize is that heavy industry needs real and immediate state support and protection to remain competitive. We need a clear legislative framework, measures to reduce energy costs, and a coherent industrial strategy, including state aid schemes for investments—just like in other European countries. Additionally, solutions must be found to limit the access of dumping-priced steel products to the Romanian market. Without these concrete measures, Romania risks losing a strategic sector, jeopardizing tens of thousands of jobs and economic stability," warns Carlo Beltrame.