Privatisation is the only chance for Siderurgica

(story to be published in tomorrow’s issue, March 7)

The management of Siderurgica Hunedoara recently announced financial forecasts for this year, which are quite optimistic, according to quoted sources. For this year, the company counts on a turnover of 1,800 billion lei, about 43 times higher than the one registered in 1992. “However, the privatisation and capitalisation of Siderurgica Hunedoara metallurgic conglomerate that should allow massive investments and modernisation, is the only chance for the company’s recovery,” said Gheorghe Pogea, the general manager of the company, quoted by Mediafax. If in 1992 the credit for the working capital was 8.7 billion lei, in 2000 it reached 51.2 billion lei. Siderurgica is one of Conel’s main debtors with 353 billion lei, about 26 percent of the amount representing delay charges. Although the volume of payments to Conel increased considerably over the last period of time, the management of the company appreciates that a new increase of electricity tariffs will place the company again in a situation in which it cannot pay its bills. The average monthly consumption of Siderurgica at present amounts to 25 billion lei and in case of a tariff increase by 18 percent another 4.5 billion lei would be added. Siderurgica has a share capital of 623.11 billion lei, divided into shares with a nominal value of 25,000 lei. The significant shareholders of the company include the State Ownership Fund with 70 percent of the shares, Banat-Crisana Financial Investments company with about 5.30 percent of the capital and small shareholders. Siderurgica Hunedoara shares have been traded on Rasdaq market since March 20, 1997, the reference price registered by these shares over the last trading session on Thursday, February 24, amounting to 1,000 lei/share.