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| Ruhr-Zink to close at the end of the year German industrial firm GEA Group has definitively decided to close Datteln-based Ruhr-Zink GmbH as of December 31, 2008. A total of 235 employees are affected by the closure. MG Rohstoffhandel GmbH, a Ruhr-Zink subsidiary based in Frankfurt am Main that is operating profitably, will be continued as a stand-alone company, and is consequently unaffected by the closure. Over a period of 18 months GEA attempted to locate a reliable purchaser for the company. Unfortunately, due to major changes in economic circumstances no investor could be found who could have offered the employees and the company a safe future. In particular, the drastic collapse in the zinc price, as well as Germany's very high electricity prices on a global comparison, have resulted in today's situation. GEA has invested considerable sums in Ruhr-Zink, especially over the last three years, in order to strengthen the company. These measures, however, have proved unable to compensate for negative market developments. Significant losses would have to be anticipated for the next few years, if the business would be continued. write your comments about the article :: © 2008 Construction News :: home page |