Romanian.Insider.
The new owner of the factory in Beşlani intends to resume production soon and transform the company into one of the main employers in the region. Dan Steel specializes in the production of nails, braided wire, welded mesh and panels, which are sold domestically and exported to Hungary, Poland, Serbia, the Czech Republic and Slovakia. The company's capacity reaches 100 thousand tons of steel products per year. The asset includes more than 40 hectares of land, buildings with a total usable area of 75,500 square meters and related equipment.
The company imported raw materials from Ukraine, Italy, Poland, Belarus and Moldova from suppliers such as ArcelorMittal, Metinvest, Belarusian Steel Plant and Moldova Steel Plant. Its main competitors were IS Campia Turzii, Ductil Steel Buzau and Metalicplas.
The company faced liquidity problems in 2017. Since then, the factory's working capital has been decreasing and its debt has increased significantly. In 2018, the European Commission imposed restrictions on the import of certain categories of steel products, forcing the company to use raw materials from European suppliers with less favorable conditions. This placed additional pressure on the company's financial position. In 2022, production fell by 26% – to 31.99 thousand tons. At the time of bankruptcy, in early 2023, Dan Steel's debt amounted to 35 million euros.
As previously reported, Dan Steel's starting value at first sale auctions was €25-28 million. As there were no bidders for the plant at that price, the asset's liquidators gradually reduced the price. The company's final price fell almost 4 times.
