IRS expands to infrastructure projects and lays off 1,100 people

 However, in the midst of the financial crisis, he is also considering laying off some 20 percent of the employees of the group’s three train car factories, Astra Vagoane Arad, Meva and Romvag. Last week, Burci acquired the ICIM Arad construction company, which is involved in western Romanian infrastructure projects, and operates on the railway, water and sewerage infrastructure segment. “I made the acquisition through Astra Vagoane Arad. Last year, the company posted business worth €23 million. Generally, when we buy something, we double the turnover in the first year,” Burci said. ICIM SA Arad was established in 1992 and has some 400 employees.

“The only way to lighten the crisis is through a major investment in infrastructure. We will diversify operations on this segment. I am talking about both railway and road infrastructure,” Burci said. Meanwhile, some 1,000 employees of the total 6,000 people working at the train factories will be laid off. “In 2008, we invested €11.5 million in the factories and sized the workforce for production higher than that in 2008. We were to produce more than 5,000 train cars in 2009. The contracts exist, but a delay in delivery terms to 2010 is being negotiated,” according to Burci.