Instead of keeping the promises it made five years ago, the new owners laid off more than 1,500 people and sold the valuable assets and core business of the company, the division that manufactured locomotives, which made it famous.
The privatization of Electroputere was signed by Teodor Atanasiu, the then chairman of the State Assets Resolution Authority. Nothing is left of the company that was a symbol of the Romanian industry as its book value became negative at the end of last year.
“I think Electroputere would have had a chance had it been acquired by a major company in its sector such as Siemens that would have integrated it into the European system. Because no such company showed any interest upon privatization they tried a last ditch solution,” says economic analyst Aurelian Dochia.
“They could have set this condition upon privatization to not sell the locomotive division but you also have to consider the possibility that if you put restrictions in place, there’s a risk that no one will have the courage to buy.”
Electroputere posted 33% decline in revenue to 128 million lei (EUR29.5 million) in 2012, as well as a RON56 million loss. (EUR1=RON4.3352)
(English version by Loredana Fratila-Cristescu)