Romania Azomures Sends 2,000 Staff On Temp Unemployment During Prod Halt

Romania’s chemical fertilizers maker Azomures (AZO.RO) on Friday said will shut down production until mid January on lack of orders and stock pileups, with some 2,000 workers to go on temporary unemployment as of December 1.

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The 2,000 workers add to the 250 staff already on temporary unemployment, the company said. Total staff on temporary unemployment reaches some 70% of Azomures’ employees.

“Suspending individual labor contracts does not mean layoffs, but temporary unemployment. Also, temporarily halting production does not mean that the plant shuts down,” Azomures said in a statement sent to the Bucharest Stock Exchange.

The company said the measure to suspend production might extend past mid January, based on economic and financial evolution and commercial activity.

However, the staff on temporary unemployment will return to work if and when Azomures resumes operations, the chemical fertilizer company said.

Azomures’ 2,250 workers will get 75% of their salaries during the production halt.

In addition, company personnel will receive their Christmas bonuses, Azomures said.

Azomures estimated in April that its 2008 net profit would reach 61.81 million lei (EUR1=RON3.8580), up 11% compared with a year earlier.

In 2007, the company switched to a RON55.61 million net profit, from a RON1 million loss a year before, while its last year revenues were at RON914.55 million, up 21.3% on the year.

The company is 56% owned by Luxemburg-registered Transworld Fertilizers Holding.

At GMT 0843 Friday, Azomures shares were trading at RON0.1850, down 3.14% on the day.

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