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MECHEL IRONWORKS SISAK SUSPEND OPERATIONS

SISAK SUSPEND OPERATIONSSISAK, Aug 24 (Hina) - Mechel Ironworks Sisak said in a statement onTuesday that it made a decision to suspend its operations, adding thatthe company was conducting consultations with the Croatian governmenton exit mechanisms.
SISAK, Aug 24 (Hina) - Mechel Ironworks Sisak said in a statement on Tuesday that it made a decision to suspend its operations, adding that the company was conducting consultations with the Croatian government on exit mechanisms.

Mechel Ironworks Sisak officials said the decision was made because market conditions regarding the company's production and raw materials used in the production had drastically changed.

"Given the above stated factors the company made a decision to suspend operations," the statement said.

The contract with Russia's Mechel was signed on 6 February 2003 and on 10 March, after it received bank guarantees, the Croatian government adopted necessary decision under which the contract on the sale of the Sisak Ironworks became effective.

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