E.ON to invest 140m euros in Distrigaz Nord

Gas distributor Distrigaz Nord, which last year became part of E.ON Ruhrgas” portfolio announced investments worth about 140 million euros for the next seven years to rehabilitate of gas distribution systems and implement new organisation structures. “We will be forced to replace 40% of the pipe network in the next few years, as the ducts are too old to be kept in use. We will also have to complete the separation between distribution and supplying, a mandatory requirement once we have entered the EU,” stated Achim Saul, deputy chief executive of Distrigaz Nord. He added that the financial resources for the technology upgrade projects would come from on a capital increase from 125 million euros to 178 million euros. After the gas distribution company announced it estimated a 27 million-euro loss for 2005, company officials say they will try to cut losses through cost and price management measures this year. The company started a reorganisation programme at the beginning of the year and it now functions as seven divisions with separate functions. “Although we currently have the biggest number of employees in the group, we have no intention of restructuring. We do have a programme meant to make our activity more efficient, and if the future tells us that we have too many employees, we will use restructuring, as well,” added the E.ON Ruhrgas representative in

Romania. ZF