TALKS WITH RUSSIAN BIDDER FOR CROATIA IRONWORKS NEXT WEEK

SISAK, Jan 22 (Hina) - Direct negotiations will resume next week with Russia's Mecelj, a company within the Ugljemet holding, as the most favourable and most serious bidder for the ironworks in Sisak, the trustee in bankruptcy in the ironworks, Ilija Maric, said on Wednesday. #L# "We shall offer the contract we offered the previous owner -- Zeljezara Sisak Nova d.o.o. -- and we shall also seek guarantees if they unilaterally terminate the contract and leave the ironworks," Maric told Hina. He said Mecelj had offered to keep all 1,700 employees in the ironworks, take it over on March 1 and start production. Mecelj employs around 45,000 workers and ranks sixth in terms of steel production in Russia. Ugljemet employs 70,000 and includes Ugljemetbank, the BASK insurance company, and the Penfosib pension fund. In 2002 it purchased the Romanian COST steel factory and another one in Austria. "Ugljemet wishes to invest in the ironworks for the production of finished steel products, the factory's transport position and quality workers," said Maric. Unions fighting for the survival of the Sisak company applauded the resumption of negotiations with Mecelj as the most favourable bidder, especially in light of the fact that the Russian firm would keep all the employees. (hina) ha sb