Romanian metallurgy is being reconfigured, with stable companies growing, 17pct exiting

The Romanian metallurgical sector is going through a process of reconfiguration in which solid companies consolidate their business and vulnerable ones disappear from the market, as the industry lost over RON 5.5 billion of turnover in 2023-2025, from RON 23.8 billion to RON 18.3 billion, according to an analysis published on Tuesday by CITR insolvency specialists.The decrease is mainly the result of difficulties of large primary steel producers, which reduced their turnover from RON 7.5 billion in 2023 to RON 2.6 billion in 2025, and also by the exit from the market of a number of small companies."Data tell a story about selection, amid declining overall figures. The major opportunity of the context is the European reconfiguration, which puts pressure on the sector and also opens a window of strategic demand. The difference between the companies that will catch it and those that will remain outside is decided now, on the balance sheet, not in two years, in court. The value today lies in taking advantage of the European context, of the SAFE funds, and acting while the options are still open," said Paul-Dieter Cirlanaru, CEO of CITR.According to the research, the decline of the industry does not reflect a generalised crisis, but a selection process. About 17% of companies active in 2024 no longer report turnover in 2025. On the other hand, the 222 companies that reported results in all the three years analysed recorded an increase of 3% between 2024 and 2025, which is RON 523 million, which indicates that the market shrinkage is generated by the disappearance of fragile companies, not by the deterioration of the performance of stable ones.The research also highlights the change in the composition of the industry. The tubes and profiles segment exceeded ferrous primary production in terms of turnover, reaching RON 6.25 billion in 2024, as against RON 5.59 billion for primary production, being the only major subsector that recorded constant growth.At the same time, aluminium metallurgy recorded an increase of 8% in 2025, to RON 5.57 billion. In addition, aluminium and processed products companies have a degree of indebtedness more than twice as low as raw material producers, 0.55 times the turnover, as against 1.31 times in the case of primary production.According to CITR, the difficulties of the European steel industry, generated by high energy costs and carbon certificates, as well as by competition from imports, also create opportunities for Romanian producers, under the European SAFE (Security Action for Europe) programme, part of the Readiness 2030 plan.Romania has an indicative allocation of approximately EUR16.7 billion through this instrument, intended to finance acquisitions in the field of defence, and the eligibility rules favour products manufactured in the European Union. Given the circumstances, the demand for steel and other metals used in military equipment, infrastructure and the defence industry could support the development of local producers.Given the context, CITR believes that restructuring mechanisms can become essential tools for viable companies, allowing them to regain their investment capacity and eligibility for projects running on European funds.