Sidex Means 7% in the Mittal Group Turnover

The estimate of this year’s turnover for Ispat Sidex steel mill is 2.1 billion dollars, which means 7% of the total turnover of Mittal Group, the Romanian based company is a part of. Mittal bought Sidex three years ago.

The financial support Ispat gets from the Romanian state as part of the privatization deal does not comply with the European Union policies. The Ispat owners and the Romanian officials did not arrive to a solution on that issue, but Narendra Chaudhary, general manager of Ispat, was confident a solution will be arrived at.

The matter to be renegotiated is the profit tax exemption, which was to be valid for another two years, according to the privatization deal. The profit for 2003 was 114 million dollars and the estimate for this year is higher. As the tax profit is 19% and assuming Ispat will perform similarly in the next two years, it follows that the negotiations concern a 45 million dollars tax break.