Kalistani Major History

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Last Privatized Foundry Closes"We can't make a profit in Kalistan" says Investor Group
Eshar, Odufaray
April 10, 4515


The last foundary privatized by the Liberal-New Way Privatization Plan closed in January

Former national assets privatized and sold off at a price on average of 10% the book value of the assets at auction by the Liberal-New Way Privatization plan have had a rough four years since privatization.  The last foundry previously owned by KalNaFerCo closed at the beginning of this year due to high costs and lack of ability to return on investment.  The Foundary, owned by Eagle Venture Capital Associates LLC, was shuttered in January, laying off the last of the 350 workers who had worked at the Eshar plant.  EVCA bought the foundry as part of a speculation deal from Eshar Properties two years ago, as Eshar Properties was going through bankruptcy proceedings.  EVCA was the fourth such owner of the foundry, which has seen parts sold off over the years, and workers laid off.

"We have worked at this foundry for decades," said veteran foundry employee George Dyer.  "I voted Liberal, because they promised that our standard of living was only going to go up.  And now, I've lost my job.  I am 54 years old.  Where am I going to get another job?  I've seen my wages cut in half and then cut in half again:  my manager told me that I could rely on welfare to make up the difference.  But UBI used to supplement my income.  I can't even make my bills anymore."

The Foundry has met a similar fate to most of the state assets that were privatized 7 years ago.  Most of KalNaPeCo's former assets have also been capped, awaiting a return in high oil prices.  Ananto Straits Holdings, who purchased many of the assets for a tiny fraction of their value, and subsequently sold them to various other companies piecemeal said "Well, the problem is, of course, the buyers could not make a return on their investment.  The thing that allowed these rigs to operate at the high prices they did, and I suppose employ the workforces they did, was the fact that we did not have to compete with one another, and the fact that we could operate at margin, rather than have to return profit to investors.  Ananto Straits got out early, and we made a tidy profit on our sales, but those who purchased them later well, they are taking a bath now, because they can't make a profit on it."

Unfortunately, when these assets are closed because they cannot profit, the things they used to supply are no longer manufactured.

SP spokesperson Edward Tyler said, "We find that we have had to begin importing so much that we used to make ourselves.  While we may save a little money this way, compared to what it would cost us if we were able to buy from Kalistani Companies, this puts our national supply of strategic materials in the hands of foreign actors who can, for any reason shut off our supply.  If they can't profit on it, Kalistani companies do not produce it.  It has nothing to do with whether or not it is needed.  All these companies care about is making a profit.  And if they can't they just shut down.  We can't rely on that, so we have to admit that foreign suppliers are more reliable than Kalistani venture capitalists."

There have been very few success stories from the Privatization.  But those are few and far between.  For the most part, the privatization has produce a real shift in the economy, and generally the only Kalistanis who have benefitted have been investors who have become specialists at buying and selling millions of shares of the new companies dozens of times daily to earn fractions of cents per share.