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Two Construction Cos In C Romania To Scrap Nearly 1,000 Jobs Citing Intl Crisis

Romanian construction company Concefa and construction material trader Ambient, based in Sibiu, central Romania, notified the local labor inspectorate and employment agency they will start laying off nearly 1,000 people starting November, citing the international crisis and lack of activity.
Two Construction Cos In C Romania To Scrap Nearly 1,000 Jobs Citing Intl Crisis
20 nov. 2008, 13:02, English

According to a statement of the Sibiu employment agency, the two companies will scrap the jobs of nearly 1,000 people working in constructions, distribution and sales of construction materials, fittings and interior decorations.

The agency said Concefa plans to sack 705 employees between November 2008 and February 2009, while Ambient plans to fire 250 people between December 1 and 10.

Employment agency spokesperson Aniela Corlatean said the nearly 1,000 people to lose their jobs are not just from Sibiu county. This is the third round of collective layoffs the local employment agency announced over the past ten days. So far, ten companies in the county announced plans to cut over 1,500 jobs.

Concefa, listed on the Rasdaq market, has a share capital of 18.8 million lei (EUR1=RON3.8421), divided into 188.6 million shares with a face value of RON0.1. Company general manager Horatiu Cercel owns a 62% stake, and the remainder is distributed among other investors, according to the most recent data available.

The construction company’s revenues increased 75.5% in the first nine months of the year, to RON109.3 million, but its net profit slumped to about RON1 million from RON3.4 million the previous year.

Construction material distributor Ambient Sibiu has a network of 15 shopping centers, eight stores and four logistic storage centers across the central and western regions of the country.

In the first half of the year, the company posted EUR105 million in turnover, up 23.5% on the year. The company expects its turnover to stand at EUR250 million at the end of the year, up 17% from EUR214 million in 2007.