Romanian President Says Steel Mill Mechel Won’t Lay Off Employees

“Mechel employees will not be dismissed. As you probably know, the situation here is not very fortunate. The company cut production on lack of orders (...)," Basescu said.

He mentioned regional development require EU funding, so that construction and infrastructure can create "an internal market for companies such as Mechel Targoviste. These segments must definitely be encouraged."

The head of state said the biggest problem Mechel is dealing with is obtaining funds for production, on the backdrop of the “extremely cautious” attitude banks have towards production loans.

“Mechel now needs loans to revive production. We must convince banks to resume lending to enterprises. The state will try to encourage banks to give more loans,” Basescu added.

The company’s general manager Viatcheslav Shmyga assured Basescu employees will not lose their jobs.

"What we have done until now was meant to overcome the economic crisis, and not to sack people," he said.

Mechel Targoviste is one of the three steel mills Mechel bought in Romania in the past two years. Ductil Steel, which has a steel alloy and wire-products plant in Buzau and a billet- making facility in Otelu Rosu, and Mechel Campia Turzii are the other two mills owned by Mechel in Romania.

Currently, Mechel company has 3,700 employees in Targoviste, 2,800 in Campia Turzii and 1,200 in Ductil Buzau.

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