Italy's ABS shutting down steel production in Sisak

 In early December, the contracts of the remaining 100 or so workers of Italy's ABS in Sisak will be cancelled and the steel plant, part of the former Zeljezara Sisak mill, will completely shut down production, workers said on Saturday.

There is no union in ABS to represent them. ABS, which is owned by Italy's Danieli, will decide the fate of the plant by mid-January. Management staff at Sisak were offered work at ABS headquarters in Udine, Italy.

After two Russian and one US company, ABS also gave up on allegedly unprofitable production in Sisak. The Americans and the Italians invested a lot to modernise the plant, now a state-of-the-art steel mill, with ABS investing about EUR 25 million. After it was modernised, the number of workers jumped to 220 and production was off to a good start but, as the mill worked only during the night because of lower electricity prices, production was not cost-effective.

The ABS management warned a number of times that they could not get in contact with the government to agree a lower electricity price given that the plant is a big consumer.

Last update: Sat, 28/11/2015 - 18:26
Author: 

More from Business

Freight train from China crosses 12,000 kilometres to London

The first Britain-bound freight train from China arrived in London on Wednesday, completing an 18-day trip across...

US prosecutors finalize 7.2-bln-dollar settlement with Deutsche Bank

The US Justice Department announced a 7.2-billion-dollar settlement Tuesday with Deutsche Bank over allegations that...

General Motors announces 1-billion-dollar investment in US workforce

General Motors will join other carmakers in opting to invest and hire inside the United States, the company...

Tobacco giant BAT agrees to 49-billion-dollar takeover of US rival

British American Tobacco Plc on Tuesday said it has finalized a deal to acquire 57.8 per cent of shares of US rival...

IMF raises China growth forecast, but warns of sharper slowdown

China's economy will expand by 6.5 per cent this year, the International Monetary Fund said on Monday, as it warned...