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Thursday, November 25, 2004

Ispat Sidex over $2 billion in turnover

Ispat Sidex general director Narendra Chaudhary Wednesday said he expects the plant in Galati to report $2.1 billion in turnover at the end of this year, almost double compared to the $1.28 billion last year.

The company's output could advance to 5 million tons of steel this year, up from 4.6 million tons in 2003.

Chaudhary would not disclose the estimated profit for the current year, but added the result will exceed 2003 figures, which accounted for over $100 million.

The Ispat Sidex general director yesterday said the group plans to buy out the remaining stakes in Siderurgica and Tepro. According to Chaudhary, the cumulative turnover of the Anglo-Indian group could exceed $2.35 billion in Romania.

LNM yesterday said it would continue negotiations with Romanian authorities regarding the incentives the state gave to the group after taking over Ispat Sidex. "We have not reached a final decision yet and I cannot make any further statement on that," Chaudhary said.

He also admitted there are several aspects concerning Romania's accession to the European Union that could have an impact on the former agreements concluded between the two parties in 2001, when Sidex was privatized.

The European Union has asked Romanian authorities to limit incentives and only help companies in difficult financial situations.
Thus, the Sidex incentives could be cut, which would make the plant pay its profit tax starting in 2005.

At the time of privatization, the government offered the buyer fiscal incentives.

One would allow Sidex to delay payment of the Value Added Tax (VAT) related to imports for three years starting October 31, 2001.

The other would exempt it from paying profit taxes for a period of five years starting January 1, 2002.

Posted by Iulia Rasoiu : 11/25/2004 01:17:00 pm