No longer working on steel!

Since the 26th March 2007, the 181 employees of Desbro are no longer working on steel bars. When they reached their place of work at Plaine Lauzun on this particular morning, three employees were distributing letters of dismissal. Those who have been working for more than three years were informed in the letter that they are giving three months notice as from the first of April 2007, and thereafter no salary will be received. It was end 2006 that Desbro intended to end its operations after nth request sent to the ministry of commerce for an increase of price in steel bars of 37%. The ministry did not acceed to the request. The Management Audit Bureau was sent to enquire the matter and it was decided to raise the price of bars by 20%.  Production which was stopped resumed.

But against all odds, on the 26th Monday morning, Desbro closed its doors claiming losses of more than 30 million rupees. According to rumors, Desbro will be taken over by South African company Murray & Roberts. Desbro was the leader in steel on the market with a share of more than 75%, in front of Samlo and  Consolidated Steels with 17% and 3% only.

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