Layoffs for privatisation

LNM Holdings BV Group conditions takeover of Petrotub Roman and Siderurgica Resita to shedding 4,400 jobs, an issue now under negotiation with the Privatisation Authority (APAPS) officials. The talks between APAPS and LNM, the owner of Ispat Sidex Galati and Tepro Iasi over the acquisition of Petrotub and Siderurgica began in August. Sources close to the negotiations say LNM is willing to buy the controlling interests in the two, yet the total number of employees should go down by 4,400, with 2,700 of them laid off by Siderurgica. Siderurgica is currently employing about 5,000 people after having fired 2,500 this year, while Petrotub had a staff of more than 4,800 early in 2003. Both companies are under special administration and were put up for privatisation as a bundle on July 23. The 4,400 employees may benefit from the provisions of Ordinance 8/2003 on stimulating the restructuring, reorganising and privatisation of a number of state-run companies. ZF