SCL downsizes its workforce
Societe des Ciments Libanais (SCL), Lebanon’s largest cement producer, reported this week that it has laid off additional 167 workers in an attempt to reduce heavy losses incurred over the last three years.
SCL General Manager Dominique Drouap said that the company made a net loss of $9 million in 2000 compared to a $19 million loss in 1999, while its annual cement production fell to $1.2 million tons last year from $2 million tons in 1997. Drouap estimated that the company would be saving about $3.5 million in salaries and benefits, as the layoffs would reduce the total number of workers to 250 from 700 in 1997.
The company borrowed more than $100 million to finance a fully automated $165 million furnace, and is facing the problem of rescheduling the loans obtained from international creditors. In light of the company’s poor financial performance and the limited growth in the cement industry, SCL stock on the Beirut bourse is trading at $0.406 near its all-time lows. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com)