Cegielski may be forced to axe workforce as Szczecin debts remain unpaid

The Cegielski ship engine plant plans to lay off 700 workers because the Szczecin Shipyard, its main client, has not paid its zl. 100 million debt due to losing financial liquidity. Cegielski was to produce 28 ship engines: 12 for Szczecin and 16 for the Gdynia shipyard, but has to reduce its staffing levels because of Szczecin Shipyard's problems. However if the production of engines for Szczecin were to recommence and a prospective joint project with Siemens on producing engines for Sudan comes to fruition, the redundancies would be lower - Cegielski may receive $100 million and euro 2 million for producing a number of high-power diesel engines for a power plant to be constructed in Sudan. According to the employees, Cegielski,'s privatization, which has been suspended by the Treasury Minister, would be the best means of rescue. Meanwhile, Szczecin prepares to restart production and the shipyard is confident of receiving a loan. (Prawo i Gospodarka, p. 1) P.W.