Greek metals industry opposes Larco's split privatisation process

Greek metals industry opposes Larco's split privatisation process

The Greek metals industry on Thursday intervened in a privatisation process of Larco metallurgical company and recommended that the company be privatised in full operation and as a single entity with all of its assets, including its plant and mine.
"It is a mistake to separate the company's assets, which will be legally wrong and against the company's business interests," the federation said in a letter sent to Hellenic Republic Asset Development Fund. "Any separation of assets, even the recent scenario of having two separate tenders, engenders great risks.

In our opinion there is a danger of either a depreciation of the plant or the mines."

It added that the state has made huge mistakes in Larco's management over the last 20 years and noted that the company was of a very strategic importance both for Greece and Europe, as it covered around 7.0 pct of iron/nickel production needed for stainless steel production in the European Union, with exports surpassing 300 million euros in value.

Larco is the largest ferronickel producer in Europe, and one of the five largest producers globally, according to its site.