Ispat Sidex steel and iron plant controlled by LNM Holdings sold one billion dollars' worth last year. It estimates to see turnover grow by 10% and to post profit in 2003, Narenda Chaudhary, Ispat Sidex general manager told Ziarul Financiar on Monday.
Sidex made $750 million turnover in 2001. The Galati-based plant was privatised in late 2001, with 2002 as the first year when it was fully managed by LNM Holdings.
Chaudhary says the plant's financial situation has greatly improved due to the considerable output growth (25%), to the much stricter commercial and supplying policy and to cutting specific costs (energy costs inclusive). Chaudhary said the electrical power consumption in the plant was reduced by approximately 33% last year.
Sidex's losses had this way gone down from the $125 million in 2001 to approximately $13 million in H1, 2002.
"The cash flow was positive last year, but we had accounting losses due to the high amortisation value. We will make profit this year, though. I think the best proof of the plant's financial soundness is that we paid more than $43 million in taxes and duties last year and banks are happy to lend us," Chaudhary said.
Ispat's head added the company had managed to pay the $155 million debts to its clients, as undertaken upon privatisation and sold most of the output through its own network instead of trade companies. The plant's average monthly output last year went up from the 260,000 tonnes in 2001 to 375,000 tonnes. Average monthly sales on the domestic market totalled 72,000 tonnes compared to the 50,000 tonnes in 2001.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
