Fortus - Iaşi Delivers New Order To STX Europe Shipyards

Doru Mocanu, Iaşi

Fortus S.A. - Iasi has delivered their 14th pedestal for pivotal cranes needed to build specialized offshore vessels to the STX Europe Shipyard in Tulcea. The cooperation between Fortus S.A. and the STX Europe A.S. (formerly Aker Yards) shipyard in Tulcea for the execution of pedestals for pivotal cranes started in 2005, being facilitated by the important production capacities and qualified workforce of the Iasi-based plant. The cooperation continued after the change in the ownership of the Tulcea-based shipyard, which continued to produce specialized vessels for offshore platforms.

The pedestals delivered to STX Europe - Tulcea measure 4.5 metres in diameter, 8 metres in height and 75 tonnes in weight and are made by the Mechanized Welding Division of Fortus S.A. The special production licenses requested by the customer and obtained by Fortus S.A. and especially the quality of the first pedestals turned the initial contracts signed in 2005 and 2006 into a long-lasting partnership. Shipbuilders are the main customers of the Iasi-based heavy machinery manufacturer, as their orders account for approximately 15% of the Fortus turnover.

The heavy machinery manufacturer, which made their first batch of steel in 1978, remains the only industrial platform with integrated technological flows and unitary management in Romania which produces heavy machinery for the mining industry, the energy industry, the cement industry, shipyards and other major industrial customers.

Fortus S.A. has an extensive customer portfolio including IHC (Holland), BEFON (Serbia), PSP Engineering (Czech Republic), Exim Trade (France), BH Wachtberg (Germany), Lafarge (France), Holcim (Switzerland) and UEI (Egypt). On the domestic market, Fortus works with ROMINEX - Timisoara, Arhipro - Bucharest, FEPA - Barlad, Fibec - Buzau, Donalm - Calarasi, Mechel - Targoviste, Ductil Steel - Buzau and the Constanta Naval Shipyard.

Fortus concluded last year with a turnover of 65,941,003 RON, down from 70,190,929 RON in 2007. Of the total turnover made in 2008, 39,058,969 RON was derived from foreign orders. As operating costs were substantially reduced, the 37,783,570 RON loss reported at the end of last year was a significant improvement from the 52,413,802 RON loss reported a year before.

Despite its strategic importance to the national economy, Fortus - Iasi is currently undergoing insolvency procedures upon demand by some of the creditors. However, the procedure has been suspended following two motions for the change of venue filed with the Supreme Court of Justice by the former majority shareholder, Metalexportimport, and the former Insolvency Administrator, Oleg Margina.

Until the Court passes judgement on the two motions, the insolvency procedure remains suspended. After that moment, the Fortus S.A. creditors will analyze the reorganization plan and probably approve it without reservations, according to some unofficial information. Fortus will try to pay off the 108 creditors by selling a number of plots of land, industrial spaces not used for production purposes and some antiquated machinery.

Specifically, the company will try to sell 50 hectares of land, the administrative building and the adjacent parking lot, three storage halls, seven idle production halls and antiquated equipment. The technical appraiser has evaluated the assets at approximately 85 million EUR and the scrap iron at a minimum of 5 million EUR.

The reorganization plan, as created by the management of Fortus S.A. and the Insolvency Administrator, also stipulates an increase in the production capacity, financed by the 15 million EUR that should be left after selling all the aforementioned assets and paying off the creditors. The company is planning to buy new production equipment and modernize existing equipment. Further attempts will be made to develop sales on existing and new markets, especially abroad.

The State Assets Recovery Authority (AVAS) resumed control over Fortus S.A. following the termination of the privatization contract signed with Metalexportimport. At the moment, AVAS holds 60.03% in Fortus S.A., followed by Metalexportimport with 26.23%, financial investment firm SIF Moldova (13.56%) and others (0.17%).

The heavy machinery manufacturer, which made their first batch of steel in 1978, remains the only industrial platform with integrated technological flows and unitary management in Romania.