BRATISLAVA, February 13, (WEBNOVINY) — According to Prime Minister Robert Fico, a departure of U.S. Steel from Slovakia would have a negative impact on the functioning of the railway freight company Cargo Slovakia. Around one-third of transport output of the national rail freight carrier is done for the steel company in Kosice and it already suffers from a slowdown of economic growth.
„If U.S. Steel quits, Cargo would completely fall on its knees. Also for this reason intensive negotiations are continuing between the government and representatives of U.S. Steel on conditions under which this investor would remain in Slovakia,“ Fico said on Wednesday after talks with Transport Minister Jan Pociatek. According to the prime minister, a crisis solution needs to be considered for the case the company loses a major customer. „Those are solutions that don’t look good, but we will have to realize them,“ he added.
„There are some alternatives regarding Cargo. One is finding a strategic partner for a joint venture. Then there are certain measures that can be done inside the company,“ said Fico. However, until a definitive decision is made he does not want to comment on these alternatives, or give them some priority.
At the end of last year Cargo Slovakia announced it plans to lay off another six hundred employees until the end of this year. In the past, a joint venture of the Czech and Slovak Cargo was considered that could improve their market position.
SITA