Romanian Electroputere To Sack 350 People Come Oct 1

Romanian electric motor maker Electroputere Craiova (EPT.RO) will lay off 350 employees starting with October 1, with compensation pay, due to the lack of contracts and liquidity, as well as following activity reorganization, the company announced Wednesday.

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The layoffs are part of the restructuring agenda taken on by majority shareholder Al-Arrab Contracting Company Limited within the privatization contract.

At the end of June, Electroputere had 1,971 employees.

Company sales declined 23% in the first half of the year, to 104.4 million lei (EUR1=RON4.2385), while the loss widened by 59%, to RON26.9 million.

In addition, the company's debt inched up 2%, to RON415 million, from RON407 million in the beginning of the year.

On the other hand, the company's receivables declined to RON50.7 million, from RON51.4 million.

Electroputere has a share capital of RON33.7 million, divided into 337.6 million shares with a face value of RON0.1. Al-Arrab Contracting Company Limited holds a 86.28% stake.

Company shares closed up 4.76% Wednesday, to RON0.11. The company has a market value of RON37.13 million.

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