Romanian Mefin To Send Its Employees On Technical Unemployment As Of Jun 2

Due to the economic crisis, Mefin decided to save the company’s resources, including sending its employees on technical unemployment, in order to avoid entering insolvency procedures, the car parts maker stated.

On May 13, Mefin announced it was to lay off all its 508 employees, but changed this decision on May 28.

Mid-May, around 300 Mefin employees organized a protest action, claiming the collective layoff decision was made without observing Labor Code provisions.

For 2009, Mefin Sinaia estimated a loss of 4.95 million lei (EUR1=RON4.1924), after closing last year with a RON165,000 gross profit.

Mefin sees 31% lower revenues in 2009 at RON22.2 million, compared with RON32.3 million a year earlier, and 15% lower expenses, at RON27.17 million, from RON32.16 million in 2008.

The company’s shareholders Monday approved Mefin‘s 2009 budget.

The company plans to make investments of RON250,000 this year.

Mefin Sinaia has a share capital of RON13.2 million split into 5.29 million shares with a face value of RON2.5.

The car parts maker is listed on the Bucharest Stock Exchange. The company’s shares were last traded on May 25, at RON0.88 per unit, down 12% compared with the reference price. Thus, the company’s market value stood at RON4.65 million.

According to the most recent data, the Sinaia-based company is majority owned by Cyprus-based DCI Walbridge Partners, part of US Walbridge Aldinger, with a 79.6% stake.