Cessation of operations and social guarantees
Ukrainian industrial group Metinvest, controlled by businessman Rinat Akhmetov, has decided to close its plant in the city of Iasi (Romania). This became known from a message sent on 30 October to local employment centres AJOFM and ITM.
As a result of this decision, 194 out of the company's 195 employees have been placed under the collective dismissal procedure. The relevant authorities — the District Employment Agency and the Territorial Labour Inspectorate — have already received the necessary notifications. The company's general director is not included in the list of those being dismissed, but the enterprise is no longer continuing its commercial activities.
The company has announced the payment of severance benefits. Employees with more than ten years of service will receive 10,000 lei (equivalent to 2,000 euros), while those who have worked at the enterprise for more than 30 years will receive 25,000 lei (5,000 euros).
Reasons for closure: loss of raw material base
In an official letter, management explains that the business model of the Romanian enterprise critically depended on the supply of hot-rolled steel coils from Ukraine. Armed attacks by Russian forces on Ukrainian facilities, which took place in August 2026, led to the suspension of production at the plant in Ukraine and affected the company's operations in Iasi.
Company representatives noted that they had considered the possibility of switching to European sources of raw materials. However, they emphasised that alternative European products are significantly more expensive — approximately 110 euros per tonne more than the materials previously supplied from Ukraine.
Deal history and financial context
The acquisition of the Romanian enterprise was one of the most important industrial deals in Iasi county in recent years. Initially, the plant belonged to the ArcelorMittal group, associated with billionaire Lakshmi Mittal, and was known as Tepro Iasi, and later as ArcelorMittal Tubular Products.
The deal to acquire 100% of the company's shares was announced in autumn 2025 and completed at the end of that year after receiving the relevant approval. On 24 November 2025, the European Commission approved the merger, concluding that it did not pose a threat to competition in the market.
The change of ownership occurred against the backdrop of the enterprise's financial difficulties; it specialises in the production of welded steel pipes. In 2024, the company recorded a turnover of 304.6 million lei (approximately 60 million euros), but also suffered a net loss of 66 million lei, which was four times higher than the 2023 figures. Despite this, the plant ranked third among exporters in the county.
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