Rominserv Valves Iaifo temporarily suspends its production of fixtures

Rominserv Valves Iaifo Zalău, a company member of Rompetrol Group, will suspend in March its production of industrial valves, due to the reduction / cutting of the budgets allocated by companies for investments, on account of the economic crisis.

"The measure is temporary and is based on a pronounced decrease in the volume of orders, of up to 50% in January and February. We have received assurances from the partner companies to further collaboration, but for the time being their investment funds are blocked," says Ioan David, director of Rominserv Valves, working point of Rominserv Company.

The company started in January-February a series of consultations with employee representatives to overcome the current situation, the solution adopted by agreement being the suspension, in March, of the industrial fixtures production and further assembly of Rompetrol Expres stations. At employee level, 80% of the staff will be affected by temporary restriction of activity.

To support the relationships with customers, staff related to Commercial, Finance, Quality Control Production and Maintenance Departments will work normal schedule, deliveries of products for the new orders will be provided from stock. Also, the contracts with customers and partners will comply with previously established programs and delivery deadlines.

“In the following period the company will participate in a series of domestic and international tenders for the supply of fixtures, the total value of these reaching over 1.2 million USD. By strengthening the partnerships and the establishment of new contractual relationships we hope to reach the necessary level of orders to resume activity” adds Ioan David.

Rominserv Valves recorded last year a turnover of approximately U.S. $ 12.5 million, up 17% over the 2007 level and 80% that of 2005 - the first year in the Rompetrol Group. The total value of investments made during 2004-2008 reaches USD 4.2 million, of which 1.2 million were allocated for environmental investments.

Rominserv, general contractor of Rompetrol Group, took over in November 2004 the assets of the industrial platform Iaifo Zalău, in process of liquidation. Currently, in the Zalau-based working point, mobile stations for fuel distribution are also produced, until now being completed 158 Rompetrol Expres stations and 70 internal stations.