Closure ahead of sell-off for Larco metallurgical complex

The Greek government on Tuesday officially announced – as widely expected – the closure of loss-making and debt-laden Larco metallurgical complex in south-central Greece in order to hold two international tenders for the unit’s assets and the main production plant.

The development means an unemployment notice for more than 1,000 full-time workers and administrative staff, union representatives were informed on Tuesday, during a video-conference with three top government ministers.

According media reports, the Mitsotakis governments wants to unveil the tenders by at least mid-March.

The first tender, overseen by a special liquidator, foresees the sale of mines owned and exploited by Larco in Greece, as well as recyclable materials and other real estate.

The second tender will be overseen by the Privatization Fund, and deals with the long-term leasing of the Larco plant at the Larymna site and a couple of affiliated mines.

The work force is now due severance pay, whatever salaries and bonuses have been accumulated and jobless benefits. What remains to be seen is what percentage of the workforce will be absorbed by the new owners, assuming that one or both of the tenders is successful.

A standing ruling by the European Court ordered the termination of Larco’s operation due to decades of illegal state subsidies. Additionally, the special liquidator, by law, is obliged to handover the unit to a new owner while in operation.

Larco General Mining & Metallurgical Co. S.A., its full name, was once billed as the largest debtor of state-run Public Power Corp. (PPC), the dominant electricity utility in the country, comprising 80 percent of PPC’s high voltage arrears.