Metinvest Tubular Iași Closes After Russian Attacks Disrupt Supply Chain
Out of 195 employees at one of the oldest industrial firms in Iași, exactly 194 face collective dismissal before Christmas following a complete operational shutdown. Ziarul de Iași reported that the factory, formerly known as ArcelorMittal Tubular Products and Tepro, submitted formal redundancy notifications to the County Agency for Employment (AJOFM) and the Territorial Labor Inspectorate (ITM). The shutdown marks a swift reversal for the plant, which billionaire Rinat Ahmetov’s Ukrainian steel group Metinvest acquired in late 2025 with plans for post-war industrial reconstruction.
Supply Chain Collapses Under Russian Strikes in Ukraine
The facility’s business model relied on hot-rolled steel coils shipped directly from a production plant in Ukraine. Russian armed attacks in August 2026 disrupted that crucial supply artery, halting operations at the Iași facility. While the company explored alternative procurement across Europe, raw material costs on the continental market run approximately 110 euros per ton higher than the Ukrainian supplies, rendering local manufacturing economically unviable.
Severance Packages and Mandatory Notice Periods for Dismissed Workers
Factory management will conduct formal consultations with the labor union before issuing individual notice periods lasting a minimum of 20 working days. Employees retain four paid hours daily during their notice period specifically to search for alternative employment. Workers with more than a decade of seniority will receive net severance payments of 10,000 lei, while staff with over 30 years of tenure qualify for 25,000 lei net. These calculations incorporate all years served at the plant under its previous owners, including the ArcelorMittal and Tepro eras.
Financial Losses Preceded the Final Shutdown Decision
Before the acquisition by Metinvest, the Calea Chișinăului pipe manufacturer posted a net loss of 66,49 milioane de lei for 2024 on a turnover of 304,6 milioane de lei, worsening from a 15,86 milioane de lei loss in 2023. Despite those financial headwinds, the factory ranked third in the list of exporters in Iași county and briefly initiated new recruitment campaigns in the spring of 2026. The European Commission authorized Metinvest’s takeover on November 24, 2025, concluding the transaction on December 16, 2025, with leadership projecting the plant would secure regular orders utilizing hot-rolled sheet metal from the Zaporizhstal enterprise in Ukraine.
Metinvest Expands European Presence Through Various Steel Assets
Group executives previously noted that the Romanian facility’s location, situated roughly 600 kilometers from Zaporizhstal, could supply up to 180,000 tons of hot-rolled sheet metal annually. Beyond its Ukrainian network, Metinvest already maintained a European presence via Promet Steel in Bulgaria alongside Trametal and Ferriera Valsider in Italy, while also submitting acquisition bids for other steel assets including the Liberty Galați steelworks in 2025. Historical records from Listafirme.ro indicate that the Iași enterprise turned a net profit in only three years since 2000, posting 1,68 milioane de lei in 2016, 5,04 milioane de lei in 2018, and 59,43 milioane de lei in 2021.
Frequently Asked Questions About the Metinvest Tubular Iași Closure
Why is Metinvest Tubular Iași closing its factory?
Russian attacks in August 2026 disrupted the plant’s supply chain of hot-rolled steel coils from Ukraine, and European alternatives cost roughly 110 euros more per ton.
How many employees are affected by the layoffs?
Out of 195 total employees, exactly 194 workers face collective dismissal, leaving only the general director position active for now.
What severance compensation will the dismissed workers receive?
Staff with over ten years of seniority will receive 10,000 lei net, while those with more than 30 years of service will receive 25,000 lei net.
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