Silcotub losses triple

Steel piping manufacturer Silcotub Zalau last year posted 3.4 million euro losses, nearly three times higher than in 2003, following an increase in the expenses on raw material. Silcotub in 2004 logged 116 million euro turnover, up 46.3% on 2003. The constant increase in the price of the steel on the international market last year was not good for the steel piping makers, as steel is their main raw material. The operating expenses of the company amounted to 115 million euros, exceeding the sales and were 40.6% higher than in 2003. Out of the total expenses, those for raw material went up 43.8% to 73 million euros. Silcotub was also affected the increase in the expenses on electrical power and water, given that utilities have been following an upward trend, as their prices need to rally to those in the European Union. Such expenses stood at 6.9 million euros last year, 23.3% higher than in 2003. ZF