Mefin in talks over 2 million-euro credit

Sinaia-based Mefin is in talks with four banks over a loan worth up to two million euros, aimed at supporting the plant’s operations and capitalising the company.

“The period requested for contracting the credit will last one year, but it may be extended. We are in talks with four banks, among which the traditional partner of the company – the Romanian Commercial Bank (BCR),” Gheorghe Barba, general manager of Mefin Sinaia, said.

The core business of the company is the design, production and sale of injection equipment for the diesel engines, components and spare parts, installations, tools and checking devices.

In late March, DCI Walbridge Partners, held by the US group Walbridge Aldinger, bought the 72.1% stake which the Romanian State controlled in Mefin Sinaia, the total value of the transaction amounting to $3.27 million. The shares were worth $1.35 million, while the purchaser committed to invest some $2 million. The main shareholder is also bound to maintain the same number of employees for a five-year period and to meet the terms of the collective work contract.

“After taking over the main stake, DCI Walbridge started several restructuring programmes at Mefin, which were part of a strategic plan. We expect the first obvious results to show in the next 12-18 months,” Mefin’s official stated.

The UK-based Lloyd’s Register Quality Assurance granted the International Standards Organisation (ISO) 9001:2000 certification to Mefin in September. The certification covers not only the diesel injection systems, but also the components for the auto industry.

“The strategic plan aims to cut down production costs and to achieve a constant output level, without interruptions or delays. The plan will be carried out through investments in training, equipment, management systems, control and quality, environment and infrastructure, as well as through improving the working conditions,” Barba mentioned.