The estimated rise in gas prices will heavily impact on the glassware industry, which will have to cut jobs and downsize production, analysts claim. Furthermore, another medium-term menace is hovering upon the industry: fiercer competition from the Chinese products. "There are companies that have several glass melting furnaces and are about to close at least one of them, which will result into layoffs," official sources from the Economy and Trade Ministry say. Up to 20% - 30% of the employees working in the field could lose their jobs, the quoted sources added.
The entire glassware and glazed pottery industry, which also includes porcelain producers, comprises some 32,000 employees, whereas 5,000 - 7,000 of them could be laid off.
The small enterprises will be dealt the heaviest blow, as their spending per product is higher than the average.
The prices of natural gas supplied to industrial consumers will increase 10% as of September 1, from $99/1,000 cubic metres to $110/1,000 cubic metres, according to the decision issued by the Natural Gas National Regulating Authority.
"The prices had remained stable in dollars, while costs had actually increased in ROL, because of the recession on foreign markets. Now that the gas price goes up, I do not know how we will survive," Teodor Sonca, general director of glassware company Somvetra Gherla said. Somvetra posts $4.6 million turnover and employs 1,000 workers.
Viorel Nicoara, general director of Stisom plant, feels that many glass plants will be closed down by 2007, when Romania is supposed to join the European Union. The plant in Poiana Codrului logs $3 million turnover and has 900 employees. Nicoara says the plant owners will no longer be able to pay bigger wages as the market shrinks and costs skyrocket.
sorin.pislaru@zf.ro ; bogdan.neagu@zf.ro
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