Tiraspol, 15 March. /Novosti Pridnestrovya/. There has recently been more politics than economy around MMZ [Moldovan Steel Plant]. There is a smearing campaign against the plant's management and the government's decisions concerning the enterprise, said the president on Radio 1.
«The first point that was leaked is the allegation that the authorities have somehow forced Russian investors out of MMZ. We have documents verifying the passage of property rights and the process of plant nationalisation. We haven't forced anyone away — the owner's representatives expressed the corresponding desire and documents reflect this fact. Besides, these documents were sent to the Supreme Council as well. And at a closed session of the Supreme Council all these aspects were discussed. It is strange that MPs who had made decisions on that issue and voted for it changed their position ahead of the elections. But this is more about politics than economy," emphasised Yevgeny Shevchuk.
The president noted that the plant requires $15−20 million of working capital for its normal operations. Since the government was not able to provide this money, they «managed to attract people who invested their own funds and put the plant into operation».
The head of state said that the government had begun to assist MMZ more than two years ago with the previous owners. «Back then the plant did not work steadily — it worked for two months, then accumulated metal scrap for three months, and then two months of work again. It did not work steadily and incurred $2.4 million of losses a month with the payroll of $1.5−2 million," said Yevgeny Shevchuk.
In 2015, the plant is estimated to have lost $10−20 million. The situation shows that without the government's support the enterprise will not be able to exist and could be stopped two years ago. «That is why that we and the ex-owner made an interim decision to support MMZ prevented the plant from being stopped," noted the head of state.
He also said that according to experts, the plant must employ about 1,000 workers when fully loaded, which is half the number of employees that are working now. «As we can see, all owners seek to increase productive efficiency, adopt new equipment and technologies that serve to decrease manual labour. But when the plant was nationalised, a task was set before the management to keep the personnel," emphasised Yevgeny Shevchuk.
«The government and the presidential administration are continuing to search for the funds necessary to purchase a new batch of metal scrap which is necessary, in turn, to launch a new cycle of production. There is a shortage of metal scrap. The scrap supplied from Moldova and Pridnestrovie is not sufficient. It is necessary to buy it in Ukraine, where there is certain quota allocation," explained Yevgeny Shevchuk.
In addition, since 1 January 2016 Ukraine has imposed restrictions in the sphere of international railway cargo transportation. Railway stations Slobodka-Export and Kuchurgan-Export do not operate.
«We view it as a breach of obligations within the framework of the railway transportation agreement between Moldova and Pridnestrovie. This entails additional difficulties for our enterprises, but we have not managed even to discuss this issue with our Kishinev partners. That is why the strategic aim of our policy is to support all Pridnestrovian enterprises regardless of patterns of ownership, of course, within available resources. This chiefly includes tax reduction and cheaper energy resources so that an enterprise could survive the crisis. Apart from this, some plants require relevant credit resources for working capital. If we find such resources, we'll be able speak about some prospects," noted the president.
