By L. Kalamara
The power was officially cut to Greece’s biggest and oldest steel mill, Halyvourgiki, on Tuesday for arrears to the country’s dominant electricity utility, with the total nearing 32 million euros, an unprecedented but more-or-less expected development in the wake failed negotiations between the sides to cover the debt.
Prospects for the major industrial concern now appear bleak, given that it is burdened by with 00 million euros in bank debts, 5.5 million euros in outstanding municipal fees and the unpaid power bill. At the same time, the Angelopoulos family – which owns a majority of the shares – shows no signals of unveiling a salvage plan.
According to the president of the union representing workers at the steel plant, G. Gakis, a court decision this week involving the members of the Angelopoulos family will determine whether a restructuring plan – based on current financial figures and prospects – is submitted, or whether the company will cease operation. The latter prospect will translate into severance pay for the workers, unemployment benefits and commencement of the process to find another job.
Sources familiar with Halyvourgiki’s operation reminded that a strategic business plan was presented in 2016, aimed to maintain the operation of all of the plant’s units, and with the prospect of developing other business activities on the 120 hectares of land it encompasses in coastal Elefsina, due west of Athens proper. Halyvourgiki also operates a private port on its premises.
The plan, however, never materialized.
According to sector analysts, the decision to cut the power to the emblematic steel plant marks the first time in recent memory that a Greek industrial unit has been unceremoniously axed as a customer, setting a negative precedent, they added.
