Gross profit registered by Sidex Galati steel mill on the first five months of this year came to 44 billion lei, of which 15 billion lei were posted in May.
The company registered turnover worth 6,536 billion lei over the same period, of which about 1,525 billion lei represented revenues derived from the basic activity of May (that is about 23% of the period's total).
Steel production stood at 1,408,000 tonnes, while cashing-ins from exports amounted to 3,134 billion lei during the same period.
"In May, Sidex reported record exports-176,000 tonnes, triggering profit of 800 billion lei," said Dan aoiman, chairman of the plant's Management Board. He added that, for the second half of the year, production is projected at about 2,100,000 tonnes of unprocessed steel.
Basic indicators calculated by the company registered an ascending trend, as compared to the similar period of last year. Unprocessed steel output was 13.6 percent higher as compared to the period January-May 1999, the output of laminates overshot by 20 percent the result registered last year, turnover was 50 percent higher, labour productivity was about 36 percent higher, and the average salary grew by about 71 percent.
For June, the company's officials estimate output standing at about 330,000 tonnes.
As to securing the company's raw materials, Dan aoiman stated that the necessary of raw material was secured through contracts until the end of this year ad on the first two months of year 2001. "By November-December, we want to make up a stock of mineral deposits and coal and should keep up production for at least two months. We no longer want to be taken by surprise by the freezing of the Danube-Black Sea Channel or by the bad weather in harbours."
As regards the number of employees, Sidex Management Board chairman said that no layoffs would be operated this year. "Between 2001-2003, 7,000 employees will retire and we will concentrate on employing young trade schools graduates," aoiman added.
At the end of last month, the consortium that will supply financial counseling for the plant's privatisation was also designated. The consortium is made up of US Fieldstone Private Capital Group and Deloitte&Touche. The consortium also includes Cameron McKenna law firm and international consultancy UEC held by USX, the former American Iron Metallurgy Corporation. The contract will develop in two stages that make up a period of 29 weeks, approximately ten weeks shorter as compared to the initially proposed period.
The consortium that is led by Fieldstone Private Capital group and Deloitte&Touche met the standards imposed by the World Bank for the technical offer, getting 80 points out of a total of 100 points.
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