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Bucharest
October 21, 2021
BUSINESS

Mechel Campia Turzii plant privatisation – under verification

Premier Victor Ponta asked the Minister of Economy, Daniel Chitoiu to rapidly check how the Russian investor of Campia Turzii kept the commitments it assumed when the plant was privatised, and accused PDL for the problems experienced by the company, although the plant was sold in 2003, by the Adrian Nastase government. “I hope I will not be right, but I think this is new <<successful>> example, same as Nokia,” Victor Ponta said, in reference to the closure of the Jucu plant during the mandate of the Emil Boc cabinet. Mechel Campia Turzii is faced with serious economic problems and the Russian owners plan to cut approximately 800 jobs, keeping just 280 employees out of more than 5,000 before the 2003 privatisation. The Campia Turzii plant was privatised by AVAS in 2003 with Swiss company Conares Trading, controlled by Russian investors, against EUR 27.2 M, of EUR 2.5 M was the price of the shares. Conares Trading, which later turned into Mechel, committed itself to investing EUR 16.5 M in technology, EUR 3.3 M in the environment and to increase the circulating capital of ISCT by EUR 3.7 M. It also promised to repay debts to the budget worth EUR 1.1 M.

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