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Trade union association against Mechel's bid for purchase of Split Ironworks

SPLIT, April 6 (Hina) - The leader of the Croatian Association of Trade Unions (HUS), Ozren Matijasevic, said on Friday that the offer of the Russian-owned company Mechel to buy the Split Ironworks should be turned down because Mechel had proven to be a privatisation venturer in the Sisak Ironworks case, causing the state huge losses that were still felt five years after it withdrew from the project.
SPLIT, April 6 (Hina) - The leader of the Croatian Association of Trade Unions (HUS), Ozren Matijasevic, said on Friday that the offer of the Russian-owned company Mechel to buy the Split Ironworks should be turned down because Mechel had proven to be a privatisation venturer in the Sisak Ironworks case, causing the state huge losses that were still felt five years after it withdrew from the project.

The trade union leader said that the Privatisation Fund should carefully consider all six offers for the Split Ironworks, which is being put out to tender for the fifth time at a price of one kuna, to prevent bidders from withdrawing their offers at the last moment.

Matijasevic said he was speaking on behalf of some 500 workers of the Split Ironworks who were against the sale of the company to Mechel.

The debt of the Split-based company to state creditors and commercial banks amounts to 400 million kuna. One of the conditions from the tender was for bidders to offer a discount for matured liabilities in the amount of 228 million kuna.

Apart from Mechel, companies from Poland, Italy, Mauritius, Germany and Switzerland have submitted offers for the purchase of an 89.34 percent stock in the Split Ironworks.

Matijasevic said that all of the offers, except for Mechel's, were good and transparent, and that the Swiss company was the workers' favourite because it was the only bidder to have signed a social clause with workers' representatives.

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