Croatia's Economy, Labour and Entrepreneurship Minister Djuro Popijac said on Wednesday that the US Commercial Metals Company (CMC) was definitely leaving CMC Sisak, the former Zeljezara Sisak steel mill, and that intensive cooperation would be continued with the US company to find a new partner for the Sisak company.
"CMC has definitely decided to leave the ownership structure of the Sisak steel mill," Popijac said after talks with CMC officials, led by executive vice-president Hanns Zoellner.
The US company last week announced its plan to exit CMC Sisak, either by selling it or closing it down. The latter option would bring into question 1,130 jobs.
Popijac said the decision to leave CMC Sisak was not the only such decision of the US company and that it planned the closure or sale of several operations around the globe.
"The production of pipes is not their core business and they have opted for such a move to consolidate operations and deal with the problems they have on international markets," said Popijac.
"We will continue with intensive cooperation primarily with the aim of finding a new partner. Interest is expected to be expressed in such segments and such markets and among such industrial players who have pipe production as their core business," said Popijac.
CMC has hired a consulting agency to start looking for potential investors and find one as soon as possible, said Popijac.
He added that a new manager would come to the Sisak steel mill to continue running the company and that talks would be held with the new management to see in which direction production would continue.
Asked what workers could expect and if they would continue to receive salaries, the minister said their jobs had not been brought into question in any moment.
"CMC was a very fair owner, it fulfilled all of its obligations towards the workers, the state and the suppliers. The company has no debts and that will stay that way," he said.
The minister added that this was proven by the participation of CMC officials in today's talks at the ministry. The ministry will help them as much as possible in talks with new potential investors, said Popijac.
He added that CMC's investments of 70 million euros in new production lines in CMC Sisak should not be underestimated and that he was certain the company would find a new partner wishing to continue with production in the Sisak mill.
