Cosmin Racianu – Nicolina Factory

March 17, 2011 · by oitzarisme · in xLegacy

“Nicolina Iasi is a producing machinery company, located in the northeast region of Romania. It was founded in 1892, its activity consisting in repairing steam locomotives and wagons. In 1912, the unit enlarges its activity, manufacturing railway rolling and stock bogies, changing its name in CFR Workshops Iasi, Nicolina. In 1967, it decides to reconvert the activity in machinery and road works construction and the unit becomes Mechanics Plant of Iasi.

By the second half of 2002, the company was privatized by AVAS (Authority for State Assets Recovery), selling the majority stakes to a consortium formed by Mecanoexport HS and Nicolina Employees Association. After privatization, in March 2004, the consortium has sold without compliance with the law on advertisement, a plot of 4.6 hectares to an “unknown” person from Bucharest, at an undervalued price, for only 1.68 million $. Within one week from the transaction, the person has sold the land purchased from Nicolina, with 4.2 million $.

AVAS management has closed the sales contract of the company in February 24, 2005. The reason was that the association Mecanoexport Employees Association did not pay the full price of the shares purchased in July, 2002. The department of the navvy machines was purchased in April, 2007, by a Real Estate Development Company, with 6.9 million €, for four hectares of land, to develop a real estate project.

Parliamentary Committee’s report which investigated the bankruptcy in privatization of Nicolina, show that the Romanian state, through its representatives on the Board of Administration (CA) of the plant, but also by people from AVAS leadership, were involved in the bankruptcy. At stake were 31.2 hectares of land in Nicolina’s heritage and the manufacturing lines which were to be sold in Poland.