If interventions are required from the Government during times of crisis, their effects can sometimes be painful. This is what Minister of Economy Sergiu Gaibu stated after the Bălți-based company Floarea-Soarelui complained that a recent decision by the Commission for Emergencies might push it into bankruptcy. The minister says that in times of crisis the economy reorganizes, and a new oil factory is already being built in Giurgiulesti
Florea-Soarelui, a large manufacturer of bottled cooking oil, recently complained that the Commission’s decision, whereby export of edible oil is VAT-exempt without the right to deduct, brings the company to the brink of bankruptcy. Minister Gaibu says that the blame for the company’s troubles should not only be on the Commission’s decision, but also on Florea-Soarelui’s outdated equipment.
“The economy is reorganizing during the crisis, and this means risks as well as opportunities for companies. Some companies need to rethink their strategies, some have been slow to change their equipment. We have many companies with extremely old equipment, inherited from Soviet times. They are not efficient and when you have increased energy consumption, as is the case for many today, you might not be so profitable in the market. Meanwhile, an oil factory is being built in Giurgiulesti and I assume it is much more efficient. Interventions are required from the Government, and some may be painful. If we want interventions from the Government, we must understand that there are certain consequences. Some bear them more easily, others more difficult. Our goal is to temper the less healthy tendencies”, Sergiu Gaibu told a talk show on RliveTV.
The minister also responded to reports that the construction materials manufacturer Macon could stop production as well, with the company complaining it faces unfair competition from the Rybnitsa Concrete Plant, which pays much lower prices on gas and electricity.
“As for Macon, their Soviet equipment has very low efficiency. Moreover, now there is interest in investing in brick production in Moldova. In Macon’s case, the Competition Council must also do its job, because the company’s representatives claim violations of competition rules. It is a complicated subject, because such different systems are quite uncommon in the world. We are looking for solutions”, said Sergiu Gaibu.
Macon, commonly known as the Chisinau Brick Factory, is one of the oldest company in Moldova, having been around for 122 years. The company now employs 320 people.