All Employees Of Burci's Plants Temporarily Laid Off

05.17.2011 ZF English

All 2,000 employees of Astra Vagoane Arad, Meva and Romvag plants, undergoing insolvency proceedings, were temporarily laid off almost two weeks ago, as the companies controlled by Cristian Burci have been insolvent for half a year and talks about attracting an investor have not had any outcome, yet.

"This is strictly related to cash. The three plants have been put on stand-by until a final decision is made about clinching some deal. Negotiations with potential investors are underway, and production restart depends on the solution we will find," said Anca Rusu, communication manager with International Railway Systems (IRS) group, controlled by Cristian Burci.

Anca Rusu also said temporary layoffs should end on May 20, but the term may be extended unless a deal is signed. Cristian Burci could not be reached for comment by press time.

A number of 1,450 employees of Astra Vagoane Arad, 250 of Meva and 238 of Romvag were put on furlough.