The company currently employs about 2,000 people, who are on furlough since December 2012. Each employee to be made redundant will receive severance pay amounting to three gross wages, Mechel said in a report.
Mechel Targoviste registered losses of 104 million lei (EUR23.3 million) in 2012, down 24.7% on the year. Its revenues amounted to RON941.3 million, down 12.3% from RON1.07 billion in 2011.
Mechel Targoviste was part of Russian steel giant Mechel, which announced in February that it had sold its Romanian assets to Invest Nikarom controlled by Russian nationals Viktor Chumakov and Svetlana Chumakova Svetlana.
Following the transaction, Invest Nikarom acquired, for a nominal sum of RON230, Mechel’s five assets in Romania, namely Mechel East Europe Metallurgical Division SRL and steel plants Ductil Steel Mechel, Campia Turzii S. A., Mechel Targoviste S.A., and Laminorul S.A. (EUR1=RON4.394)