PRIME MINISTER VISITS SISAK IRONWORKS

SISAK, Feb 18 (Hina) - Prime Minister Ivica Racan visited the ironworks in Sisak on Monday as part of a trip to Sisak-Moslavina County, on which he was joined by Deputy PM Slavko Linic, Labour and Social Welfare Minister Davorko Vidovic, and other state officials. A big burden has been lifted with the sale of the ironworks after a four-month bankruptcy proceeding which involved reorganisation, Racan said during talks with representatives of the new owner, an Austrian-based group of investors from Austria, Switzerland, the Netherlands, and Russia. The most important thing is the strategic partner's commitment to invest in the modernisation of production, the fact that most of the employed (1,700) have kept their jobs, that production has continued, and the new owner's intention to expand the scope of activities and raise the number of employees by 2005, said the prime minister. He was briefed about the situation in the new company by one of the members of the board, Kresimir Landek, who spoke on behalf of the international investors. Landek said the ironworks was taken over on Jan. 15 and that the investors were properly executing their duties to the workers and the state. Plans include producing 155,000 tonnes of pipes, opening new plants, expanding activity, and employing around 2,500 workers by 2005. Also in Sisak today, Racan and the government delegation met the directors of the oil company INA and its local refinery. Refinery director Boris Cavrak and INA executive director Zeljko Vrbanovic informed the PM about production and business plans this year, and development plans by 2005. This year INA plans to invest US$18.5 million in state-of-the-art refinery equipment and another US$250 million by 2005, particularly in desulfurisation so that INA's product can meet European standards. (hina) ha sb