EMCC European Monitoring Centre on Change

Adria Celik (Adria Steel)

Company/Organisation:
Adria Celik (Adria Steel)

Geographic Location

Country: Croatia
Region: Splitsko-dalmatinska županija; Jadranska Hrvatska; Hrvatska
Location of affected unit(s): Kastel Sucurac, City of Split

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.1 - Manufacture of basic iron and steel and of ferro-alloys
Number Employed: 210
Group: Techcom GmbH

Employment Effects

Announcement Date: 18-11-2015
Planned Job Reductions min: 190
Planned Job Reductions max: 200
Type of Restructuring: Bankruptcy
Employment Effect Start: 23-11-2015
Foreseen End Date: 01-11-2016
Direct Dismissals: 190

Additional Information

The Plant Adria Celik (Adria Steel) was established in 1971 and in July 2013 it became 100% owned by the company Techcom GmbH which paid HRK 10.3 (€1.36m) for it and pledged to invest €8.5m.The enterprise consists of electro-steel-melting and rolling shops with an annual production rate of 200 thousand tonnes of bar-rolled stock of high-quality. During 2012 - 2013 large-scale modernisation, repair and replacement of metallurgical equipment was carried out.

Production was stopped however in summer 2014 and the company's bank account has been blocked for more than a year and half. Debt grew to HRK million 11.4 (€1.5m). Workers have not received their salaries for eight months and in the Commercial court of the City of Split on November 17 2015 the company was declared bankrupt. 190 will be laid-off.