ArcelorMittal, the world’s largest steel producer, posted sales for 2007 in Romania worth USD 1.33 billion (EUR 870 million), down 27 percent year-on-year, of USD 1.84 bln (EUR 1.19 bln), the second year subject to a decline, the company announced.

The group is concerned about the unstable political environment and economic reforms ''which could not be continued'' in Romania and Ukraine, Business Daily reported.

Furthermore, ArcelorMittal’s business is affected by the political environment, social and judicial challenges in several emerging markets on which it activates.

In Romania, ArcelorMittal controls the metallurgy plant ArcelorMittal Galati, ArcelorMittal Tubular Products Roman, ArcelorMittal Hunedoara, the local branch of ArcelorMittal Construction (AMC), and the Romportmet Galati port operator.

The group’s main operation on the Romanian market is ArcelorMittal Galati, former SIDEX, which posted turnover worth RON 12 bln (some USD 5 bln) in 2007, double year-on-year. ArcelorMittal will invest over EUR 140 mln in the Galati steel plant in the coming three years to increase its production of rolled steel. The total investment budget in 2008 will amount to over EUR 70 mln, similar to that of last year.