French engineering group Alstom, one of the global power and transport equipment suppliers, expects the companies it holds in Romania to post some 40 million-euro turnover in the current fiscal year, ending March 31, 2004. The estimated value is similar with the amount logged last year.
However, the total volume of the Alstom businesses in Romania is in fact double (some $80m), comprising domestic and international components, namely orders received from other Alstom companies operating on the domestic market.
The sale of the group’s turbine business and of the transmission and distribution (T&D) unit this year will not have a major impact on Alstom’s operations in Romania.
“Alstom activities in Romania may adjust to the way the Romanian market works. Alstom’s international transactions do not significantly affect the operations here. As for the T&D unit, we have a sales structure comprising 2-3 persons, with annual sales worth 4-7 million euros. The personnel includes some 900 employees,” Emilian Dobrescu, country president of Alstom Romania, told Ziarul Financiar.
Alstom is running a financial rescue plan, with support from the French State, as it is trying to eliminate debts. The group has already sold the industrial turbine unit to the German group Siemens early this year, in a deal worth 1.1 million euros. Alstom has reached an agreement to sell its Transmission & Distribution activities to nuclear power operator Areva, for 950 million euros. On the other hand, the French government financial aid to Alstom is subject to an official investigation prompted by the European Commission.
On the Romanian market, Alstom focuses on “restoring and modernising works for companies such as Termoelectrica, Electrica and the national railroad company CFR.”