Artrom borrows 16.5m euros from owner

Piping manufacturer Artrom Slatina”s board of directors is to ask the company”s shareholders for approval to take out a loan of 16.5 million euros from Germany”s Sinara Handel, the commercial representative of the Russian TMK Group. Sinara Handel controls both Artrom Slatina (with over 80%) and Combinatul Siderurgic Resita (Resita Steel Plant). The loan will be used to fund manufacturing and commercial operations. “We are talking about some financing from our majority shareholder, a simple commercial loan. We already had the shareholders” approval but it expired, and we need get their approval again under law,” said Adrian Popescu, Artrom”s general manager. The company”s shareholders endorsed a 39 million euro investment programme in August for the creation of a rolling facility with a capacity of 100,000 tonnes of pipes per year, as well as a further 10.5 million euros to fund production. “The 16.5 million euro loan is earmarked entirely for the funding of Artrom operations and has nothing to do with the investment programme commenced in August,” explained Cristina Vaduva, financial manager of the Slatina-based company. ZF