Daewoo Motors Polska announces 1,100 more job cuts

President of Daewoo Motors Polska (DMP), Young Kab Cho, has announced further job losses at the company' s plant in Lublin. As many as 1,100 workers at the plant may be made redundant, although Cho insists that the number will be kept to a minimum. Already this year, 900 people have been laid off by the plant. The company has said the policy of trimming its workforce is necessary if it is to survive at a time when the vehicle market is in a state of collapse. However, the situation is expected to improve once a deal is finalized for Pol-Mot Holding to take over the Lublin plant. According to Cho, the agreement will be signed by the end of June, with the first part of the contract completed this week. Pol-Mot is to invest $20 million in acquiring a 75% stake in the Lublin plant. Young Kab Cho also said that the board is optimistic that the agreements concerning the restructuring of the plant' s debts, which are estimated to amount to $93 million, will be concluded. In addition, the State Treasury is expected to guarantee a new $100 million debt credit for the plant. The funds will be used for the completion of a new van project. (Zycie p.8) A.D.