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

US unemployment rate dips to 9-year low

The US unemployment rate fell in November to 4.6 per cent, a nine-year low, the Bureau of Labour Statistics said...

Chinese firm building full-size Titanic replica for tourists

Construction has begun on the world's first full-size replica of the Titanic in China, a country that fell in love...

Erdogan calls on Turks to sell dollars and buy lira and gold

President Recep Tayyip Erdogan urged Turkish citizens on Friday to sell their dollars and buy gold and lira, as the...

EU agrees to let Germany introduce road toll, staving off legal feud

The European Commission has approved Germany's plan to introduce a road toll on its motorways, top transport...

Danish container shipping giant Maersk Line to buy German rival

Global shipping giant A/S Maersk Line of Denmark on Thursday announced plans to grow its business by buying German...