Mechel's Romanian Unit Halts Factory

Mechel Targoviste, the Romanian steel mill owned by steel and coal producer Mechel, halted production for five days until Nov. 10 because of declining demand.

The halt, during which workers will be paid 75 percent of their wages, won't lead to job cuts, the Targoviste, Romania-based plant said Wednesday in a statement.

Mills are slashing output globally as the economic slowdown curbs demand from builders and carmakers. ArcelorMittal, the world's largest steelmaker, said Wednesday that it would reduce production of flat carbon steel by as much as 35 percent in the United States and 30 percent in Europe. Dacia, the Romanian automobile manufacturing unit of France's Renault, halted production for four days in October.

Mechel's stock was down $1.02, or slightly over 11 percent, to $7.99 in New York at 12 p.m. on Wednesday.