The Race of Split and Sisak in Parallel Shutdown

Two production facilities are competing these days in – parallel shutdown. Both cases – the Sisak steelworks and Split’s Dalmacijavino – share a common thread.

These are the epilogues of two privatization sagas, in which well-known and unknown global bluffers participated, with the selfless assistance of a whole series of incompetent ruling coalitions. Since 2001, two Russian owners have paraded through Sisak, Trubo Impex and then Mečelj, with the state regaining ownership at the end of 2006 after their departure. Then the steelworks was handed over to the American CMC, which is also withdrawing, and a savior was found in the Italian Danieli. The Italians began investing in Sisak, but due to cheap steel from China and Turkey, and now Ukraine, they are locking the doors. The decision was not made overnight. The problem was elaborated last summer in Lider by the CEO of ABS Sisak, Marco Clemente. However, for now temporarily, only until June, when a final decision will be made about closing the ‘remnants of remnants’ of the facilities where 14,000 workers once worked.

Machines are also stopping at Split’s Dalmacijavino. However, the new owner Marinko Zadro will continue production in Drniš. But, if he even manages to take possession. Namely, these days a complaint arrived from the infamous Salamon Berkowitz, the owner of Traubisoda, who once paraded through Croatia announcing that he would buy the producer Pipija, even before the bankruptcy of Dalmacijavino. Four years ago, his purchase fell through, and now he hasn’t even submitted a bid at the public auction, where Zadro’s Oštrc was the only buyer, acquiring Dalmacijavino for 70.5 million kuna.

What is the lesson from these privatization requiems? Let’s keep our fingers crossed for Danieli and Zadro to succeed in saving production. They are so far the most serious owners of the Steelworks and Dalmacijavino. The only question is whether they have arrived just in time, or too late.