BUCHAREST, Romania (AP) -- French-Romanian carmaker Dacia and steelmaker Arcelor Mittal Hunedoara said they will temporarily halt production due to a sharp drop in sales as the world's economic turmoil hits Romania's industrial sector.
Dacia said said Monday it will halt production from Nov. 20 to Dec. 7 because of the financial crisis which led to a 30 percent drop in cars sales in October compared to a year ago. It said its export center will remain open.
Dacia said in a press release its market shrank also because of "the invasion of imported secondhand cars" and warned that jobs in the car industry are in danger. Dacia's 14,400 workers will get 85 percent of their salaries during the production halt.
Renault SA has invested $1.29 billion (euro 1 billion) in Dacia since buying it in 1998.
Steelmaker Arcelor Mittal said Monday its factory in Hunedoara, in western Romania, will close in November and December, due to the drop in demands for steel on the international market, but the company said it would not cut jobs.
Arcelor Mittal Hunedoara employs about 1,200 people. The workers will get 75 percent of their salaries during the shutodown.
