SPLIT IRONWORKS MANAGEMENT, SUPERVISORY BOARD RESIGN

SPLIT, April 14 (Hina) - The management and supervisory boards of Sisak Ironworks resigned on Monday due to dissatisfaction with the government's attitude towards the situation in the company, which has not been producing for two months. #L# Jakov Miljak, the plant's manager in the past three months, told reporters in Split today that the management and the supervisory board were ready to step down if they were the reason why the government was unwilling to help the plant. Although it had promised to do so, the government last week did not discuss a request on a 50-million-kuna guarantee to help the ironworks re-start production, Miljak said. He believes the government must prevent the closure of the plant for the sake of its workers and the survival of the metal industry in the area. The government's refusal to back the management, despite the patience and understanding the plant's major creditors and workers have demonstrated, points to the influence of metal import lobbies which do not care about domestic production, he said. The plant's workers union fully supports the management and supervisory boards and strongly criticises the government, claiming that iron importers were trying to destroy Split Ironworks. Miljak recalled that the new management was appointed following reports about irregularities in the operation of the plant's previous management. The new management had not even started production when, more than two months ago, the Croatian Power Company (HEP) cut power supply due to the plant's debt of 7.5 million kuna. It was then that the management started negotiations with Economy Minister Ljubo Jurcic and Vice-Premier Slavko Linic as the ironworks had been fully reconstructed with a 22-million-euro loan and government guarantees, Miljak said. The new management board was requested to draw up a production plan, which it did in the best possible way. The plant agreed with the HEP to pay its debt in instalments and 415 workers received one of their seven overdue salaries, Miljak said. (hina) rml