Kurum agrees to invest; KESH agrees to lower electricity price
Uncategorized Thursday, March 9th, 2006a EUR 10 million investment for the construction of an electricity substation
by the Turkish steel company Kurum, the Albanian Power Corporation (KESH) was finally
convinced to lower its price for the electricity provided to the company.
decision to return 200 of its rolling mill factory employees back to work,”
Zeky Kaya, general director of Kurum said during an interview for daily
Albanian business newspaper Biznesi.
“The lower electricity
price agreement with KESH was achieved only as a result of our agreement to
invest EUR 10 million for the construction of a new electricity substation in
Elbasan,” said Kaya. However, another 1000 employees remaining will not be able
to get back to work yet, Kaya explained.
After several months
of unproductive negotiations with the Albanian government, Kurum decided a
month ago to stop all its operations in its five Elbasan Steel Combine
factories due to mounting costs and economic inefficiency, a press release said.
That decision also left 1200 of its almost 1300 steel workers out of their jobs,
however.
High electricity prices,
unfavorable customs tariffs, unfair competitions from importers and no positive
results from negotiations with the government were among the major reasons
Kurum had decided to stop, according to the release.
Presently, Kurum
covers about 40% of the steel domestic market, meanwhile Kaya claims that the
company can fulfill up to 100% of all steel domestic needs. “Unfair competition
and especially products coming from Ukraine hinder us; only protection
of the domestic production by the government will determine the fate of
investments made in the country” Kaya said.
Short URL: http://www.albanianeconomy.com/news/?p=136
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on Mar 9 2006. Filed under Uncategorized.
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