'BRODOSPLIT' MANAGEMENT CLAIMS SHIPYARD IS RECOVERING

SPLIT, June 15 (Hina) - Split's shipyard 'Brodosplit' has reduced its production costs and deadlines and agreed on the construction of 13 ships worth some US$300 million. This will secure the company's full operation until the first quarter of 2003, 'Brodosplit' representatives told reporters at a news conference in Split on Friday. This is the result of comprehensive measures which the company's management implemented over the past year in order to improve production and rationalise the company's organisation with the aim of privatising it, 'Brodosplit' director Vinko Rosic said, adding the privatisation should start at the end of next year. "Brodosplit's performance is better than before and it is not true that nothing here is functioning," Rosic said alluding to statements by Deputy Prime Minister Slavko Linic, who said the managements of some shipyards were incompetent. Rosic said the company had produced 742 tonnes of ship parts per month in 1999, whereas this year the production increased to 2,200 tonnes per month. Production deadlines and costs have been reduced. Due to its current contracts, the company will not be concluding new contracts by the end of summer, after which it intends to turn to the construction of ships for special purposes, such as passenger ships, ferries and tankers for remote north seas. The company management once again emphasised the need for the government to subsidise shipbuilding industry with ten percent, adding Korea was subsidising its shipbuilding industry with funds amounting to 13-40 percent of the price of a ship. (hina) jn rml