INA RESTRUCTURING PLAN TO BE SUBMITTED TO GOVERNMENT SOON - STERN

( Editorial: --> 9943 ) ZAGREB, June 9 (Hina) - The Croatian oil industry INA has finished the last business year with a profit of 215 million kuna, while INA- grupa had a less good year, with a profit of 41 million kuna, INA representatives told a press conference in Zagreb Tuesday. INA has also completed a restructuring plan, which is soon to be submitted to the Government, INA representatives said. Speaking about the sea transport of oil products, INA representatives said the solution of this problem is for shipping companies to purchase new ships or allow INA to work with foreign shipping companies. INA General Director Davor Stern recalled that the restructuring plan was made in cooperation with independent advisory bodies, which have recommended that some plants be closed down. However, INA does not intend to close down the Sisak Refinery, Stern said. INA can be completely restructured within two years, and in the second half of next year it could appear in the international market, Stern said. Its privatisation depends on the Government, which has to propose a privatisation plan to the Croatian National Parliament, he added. This year, INA intends to make US $120 million-worth investments, mainly from current operations, although negotiations are under way on a US $30 million loan from the European Bank for Reconstruction and Development for environmental protection projects in the Rijeka Refinery. INA representatives have also announced an investment worth between 30 and 40 million dollars for research activities and production of oil and gas. A similar amount is planned for the construction and reconstruction of petrol stations, warehouses, transport etc. (hina) rml 091523 MET jun 98