Shake-up pays off for Cuprom

Copper and rolled goods manufacturer Cuprom, which is made up of former copper producer Phoenix Baia Mare and former copper rolled goods and wire maker Elcond Zalau, turned over more than 100 million dollars (80 million euros) last year, four times higher than in 2003. Gross profits exceeded two million dollars. The company’s results are the result of a restructuring plan that followed the change of ownership. Phoenix Baia Mare and Elcond Zalau were sold by the state to the Anglo-Indian company RBG Resources in 1998-1999. RBG Resources failed to turn them into profitable companies and they went into liquidation. Then, in May 2003, a group of Romanian investors from the banking sector bought Phoenix Baia Mare from the State Assets Resolution Authority (AVAS) and Elcond Zalau from its London-based liquidators. “The companies were unrestructured and were using high amounts of energy and utilities,” explained Horia Simu, Cuprom chairman. The restructuring consisted of several stages. The first was to merge the two companies and create Cuprom. The new owners then reworked the commercial contracts and invested an initial 10 million dollars in the company. That was followed by cutbacks in staff. ZF