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Amiantit group sees $90m turnover in Romania

05.12.2001, 00:00 27



Saudi Arabia-based Amiantit Group is planning to establish a pipe production centre in Romania.

The pipes will be aimed at the water supply, construction and oil industry in Central and Eastern Europe, allowing the group to reach some 90 million dollars in turnover in 2004, the director of the group's subsidiary in Romania, Ghiorghe Dabu, said.

However, Amiantit plans depend on the Executive's decision regarding the takeover of Sidermet Calan company viable assets by the Saudi group.

"We have voiced plans to produce malleable iron pipes one year ago and we are expecting the Government to approve the establishment of a joint venture between Sidermet and Amiantit," Dabu said.

The Government several years ago granted a 15 million-dollar loan for the import of two machines made by US company Centricast, for the production of malleable iron pipes at Sidermet Calan.

The value of the equipment was partially paid, while the machines are not installed yet, being stored in the containers brought from the US.

"We want the Government to pass the decision as soon as possible so that we can begin to install the equipment and run the tests before the guarantee offered by Centricast expires," Dabu added.

The equipment is guaranteed until November 2002, while Amiantit is planning to start production no later than September 2002.

The Government decision may come at a time when Sidermet employees are about to go on strike, while the atmosphere at the steel mill is tense as investment funds are lacking and the employees are paid only partial salaries.

The joint venture is supposed to have a share capital of more than 20 million dollars, with a participation of 8.3 million dollars from Sidermet standing for lands, buildings and other assets and a participation of 12 million dollars from the Saudi group. Amiantit will hold a 58% stake in the newly established company.

Sidermet is one of the companies included in PSAL I and, according to Dabu, the World Bank agreed with the joint venture one week after the Privatisation Authority (APAPS) submitted the proposition on the joint venture establishment.

The group's turnover will amount to 25 million dollars annually following the operations to be carried in Sidermet. Amiantit is also planning to take over a department producing the same type of pipes currently held by Orastie-based Romarm company.

"Industry and Resources Ministry officials that coordinate this department told us that the takeover agreement would be concluded when the Calan transaction has been concluded," Dabu specified.

The Orastie-based department also has two machines with an annual capacity of 40,000 tonnes of malleable iron pipes, but the equipment was manufactured in Germany, by Fritz Werner.

Dabu said he was contemplating the possibility of building a railroad linking Calan and Orastie for the transport of the liquid malleable iron.

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