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Lack Of Action Is Risky In A Fincl Crisis - Holcim Romania GM
The lack of action is the most risky method to deal with the uncertainties provoked by the financial turmoil, but the hastily-taken measures may be as well dangerous, cement producer Holcim Romania general manager Markus Wirth said Tuesday.
"Some of the measures taken by the local unit of Swiss group Holcim are reducing and adjusting the costs on all segments, promoting new products ... and postponing investments to increase the production capacity," Wirth said during the "Mediafax talks about Business Solutions to Crises" seminar.
According to him, the authorities should make the public administration sector more transparent, make long-term plans, establish clear targets and grant adequate financial resources for infrastructure projects.
In addition, Wirth said the Romanian authorities would have to comply with the EU legislation, initiate reforms and take over the viable initiatives of other states.
"The Government must respect its contractual obligations without postponing the payments," Wirth said.
The Government must also create a new procedure for better administrating and collecting the taxes, he added.
The construction materials maker said mid-March that it takes into account several scenarios for this year’s business evolution, the best case one aiming a flat turnover on the year in 2009, while the worst case one indicating a 20% fall compared with 2008.
In 2008, the company reported a 25% higher turnover, at EUR372 million, from EUR297 million a year earlier.
Since the beginning of the year, the company sent 60 people on technical unemployment, due to lower product demand, and said it would sack part of its employees if the market does not revive in the next period.
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