ZAGREB, April 24 (Hina) - The Croatian government on Thursday issued state guarantees to Sibenik's TLM to the amount of 17 million euros and the Split Ironworks to the value of 57 million kuna (EUR7.6 mln).
ZAGREB, April 24 (Hina) - The Croatian government on Thursday
issued state guarantees to Sibenik's TLM to the amount of 17 million
euros and the Split Ironworks to the value of 57 million kuna
(EUR7.6 mln). #L#
At the same time, the government bound the economy ministry to
investigate the liability of both companies' management and
supervisory boards.
The Split Ironworks was offered the guarantee of 57 million kuna to
cover the costs of seven unpaid monthly salaries and to restart
production in two plants -- cold steel manufacturing and the
rolling plant.
Government members agreed there was a way to save the Split
Ironworks because it was the only manufacturer of steel beams and
building materials in Croatia and there was a market for these
products.
Ministers praised the behaviour of employees in seeking a solution
for the Ironworks. Most motivation to settle with creditors was
instigated by the employees, who have not been paid for seven
months, Deputy Prime Minister Slavko Linic said.
The government concluded that it would investigate the actions of
the management and supervisory boards of the Sibenik-based TLM
which was given a guarantee of EUR17 million euro, of which 12
million is to settle debts to foreign creditors and five million to
be invested in upgrading the foundry and the rolling plant.
TLM has successfully completed the first phase of upgrading and
additional investment could increase productivity to 100,000
tonnes of final products per annum.
The government had already supported modernisation programmes for
and the financial consolidation of TLM with the conclusion that the
production of aluminium is one of the most strategic in Croatia,
Linic reminded.
It was said that TLM was a significant exporter for Croatia,
exporting 85 percent of its product valued at around EUR140 million
euros. It plans a steady growth in the period up to 2007, from about
14 million kuna (EUR1.9 mln) this year to 56 million kuna (EUR7.5
mln) in 2007.
(EUR1 = 7.5 kuna)
(hina) sp/ha sb