Romania at an Industrial CrossroadsRomania finds itself at a critical juncture in its industrial development. Carlo Beltrame, CEO of the Beltrame Group, which owns two major steel plants in Călărași and Târgoviște, believes the country can substantially narrow the GDP per capita gap with Italy within the next 3 to 5 years. This is contingent on a decisive commitment to reindustrialization, modern infrastructure development, and a strategic approach to preserving and valorizing internal raw materials such as scrap metal. Beltrame’s vision underscores the necessity of a coordinated national strategy to elevate Romania from a steel importer to a regional production powerhouse.

Heavy Reliance on Imports & Emerging Local ProductionFor decades, Romania’s construction sector was almost entirely dependent on imported steel, consuming between 1 and 1.5 million metric tons annually with negligible domestic production. Beltrame explains that the Beltrame Group has begun reversing this trend by investing approximately €120 million into their Târgoviște facility. The group produces steel specially engineered to meet Romania’s stringent seismic standards, an essential factor given the country’s vulnerability to earthquakes. Currently, around 85% of the steel produced at their Călărași plant is exported, signaling both global competitiveness and local demand that still exceeds supply.

Scrap Metal: A Strategic Resource Exported at a LossOne of Romania’s most pressing industrial paradoxes is its export of about 70% of collected scrap metal. While many countries outside the EU block scrap exports to maintain their steelmaking industries, Romania continues to send this valuable raw material abroad. Beltrame highlights that this practice results in a dual setback: the loss of economic value and a weakening of strategic resource management. Instead of recycling scrap into competitive, locally produced steel, Romania imports cheaper steel, primarily from China, at prices aligned with raw material costs. This cyclical dependency undermines local producers and the broader industrial ecosystem.

The Challenge of Substandard Steel ImportsRomania faces an influx of steel imports from China, Turkey, and Algeria, many of which do not conform to the European Union’s environmental or safety regulations. This influx threatens both the competitiveness of domestic steel producers and the structural integrity of Romanian construction projects. Given Romania’s high seismic risk, the use of inferior steel poses a serious public safety concern. Unlike Greece, which rigorously inspects every shipment of imported steel before allowing unloading, Romania lacks a national homologation or certification system for construction steel. This regulatory gap means that imported steel quality remains largely unchecked, increasing risks for buildings and infrastructure.

Infrastructure: A Critical Bottleneck for GrowthInfrastructure development is fundamental to Romania’s industrial ambitions. Beltrame contrasts Romania’s current transport situation with Italy’s: crossing Italy takes about 10 hours, while traveling across Romania, especially to regions like Maramureș, remains slow and difficult. This inadequacy in roads, railways, and logistics infrastructure not only hampers industrial efficiency but also affects other sectors like tourism. Improving infrastructure connectivity is therefore vital for enabling faster, more cost-effective industrial operations and attracting new investments.

ESG Pressures Shaping Romania’s Industrial FutureEnvironmental, social, and governance criteria are rapidly reshaping the industrial landscape in Romania and across Europe. Alina Bordei, Head of ESG & Sustainability Solutions at CBRE Romania, explains that investors, clients, and banks increasingly demand compliance with sustainability standards. The European Union’s Green Deal, Taxonomy regulations, and related policies compel companies to demonstrate measurable reductions in carbon footprints and environmental impacts. Although Romania currently lacks direct fiscal incentives for green building projects, pending legislation is expected to integrate carbon footprint assessments into energy performance evaluations for buildings, driving demand for low-CO₂ construction materials such as sustainably produced steel.

Investments in Sustainability Amid Energy Cost ChallengesThe Beltrame Group has allocated around €400 million to various projects over the past five years, with approximately 80% devoted to ESG initiatives including reducing energy consumption, water use, and CO₂ emissions. Despite these substantial investments, the profitability of local steel producers remains fragile, largely due to Romania’s exceptionally high industrial energy prices, the highest in Europe in 2023. Without government support and protective trade measures, Romanian producers face an uphill battle competing against cheaper, less sustainable steel imports, which benefits from lower regulatory and energy costs abroad.

Opportunities & Lessons from Global PeersThe United States provides a compelling example of how protective policies combined with reinvestment in modernization can transform an industrial sector. Through tariff protections and reinvestment of profits into advanced, sustainable steel production, the U.S. steel industry regained global leadership. Beltrame remains cautiously optimistic that Romania could replicate such success by prioritizing infrastructure improvements, fostering local production, and establishing a stable investment climate. If these conditions are met, Romania could significantly close its economic gap with Italy and emerge as a vibrant industrial hub within Europe in the coming years.

Key Takeaways

• Romania exports 70% of its scrap metal instead of recycling it domestically, limiting local steel production and economic value retention.

• Steel imports from China, Turkey, and Algeria often do not meet EU environmental and safety standards, risking construction safety in Romania’s seismic zone.

• Despite significant investments in green steelmaking, Romania’s industry struggles with the highest industrial energy costs in Europe and lacks sufficient state support to compete effectively.