Kalistani Major History

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Kalistan to restore National Industries
Steel has already begun rolling off line at National Foundry
Sulari, Suldanor
March 4, 4699


The Kalistani National Foundry, Kalistan's primary steel refinery, boosts production ahead of passage of National Industries Bill

The Speaker of the Socialist Party of Kalistan welcomed the ultimate passage of the reauthorization of the Charters for the National Industries.  The Bill would unshutter the offices of KalNaPeCo, the Republic's petroleum industry and KalNaFerCo, its National Steel Industry.  In addition, KalMilInCo, its military industrial complex and KalNaTexCo, or its textile plant will also be reopened.  All four organizations were disbanded more than a century ago after Liberal Government swept the nation.

"Luckily," commented Sister Rebecca Bennots- Edwards, "these industries were maintained though the Republic's controlling interest in them was dissolved.  This means that instead of spending years uncapping wells and re-firing a rusted out Foundry, the matter is simply an issue of compensation to the former corporations, and the staffing of the corporate offices."

Over the decades of denationalization, oil production in Kalistan fell from 350,000 barrels a day at the height of KalNaPeCo to just over 85,000 barrels a day.  "Kalistani crude isn't as profitable without National subsidies," said Bennots.  "The corporations weren't making enough money, and Kalistan wasn't exactly pursuing international trade, so they just cut way back on production to help protect the price for Kalistani investors."  Steel production was in a similar slump.  But upon signals from the government that they were ready to renationalize starting with the re-establishment of the National Bank, production in all four sectors picked up.  "We think that owners wanted to increase the value of their assets, so that their compensation would be higher," said Bennots.

Kalistan has a long history of nationalization with compensation.  Investors have a long precedent of the Republican Government offering fair compensation.  One investor, Mary Ulysses from Everari, was particularly happy, "Stocks in those sectors were seen as 'safe' stocks, low yield, but also low risk.  They were never nearly as volatile as commodities from elsewhere in the world, just because our nation was such underproducers.  With nationalization, the bills provide for stock exchange, so I will likely just keep my money in the sectors.  They form a nice backbone to my portfolio."

The National Foundry is expected to include an aluminum mill at its Sulari site, to accommodate the bauxite imports recently acquired from Dolgova.  "Aluminum refining will likely not be our priority in the Mill," said Gina Smith, who is widely believed to take over the job as General Manager of the National Foundry.  "We are more interested in developing a national stockpile of aluminum, which can be used as needed.  Depending on how the refinery goes, cost wise, that will determine the future of aluminum refining in Kalistan."

Much of KalNaFerCo's initial production will head to the Kaliburg National Shipyards, and shall be used to begin building new augmentation to the KRN's Second and Third Fleets, according to the plans of the Defense Minister's modernization efforts.

All four National Industries will be traded openly on the Kalsie, under stock symbols KNP, KNF, KMI, and KNT respectively.  The Renationalization will officially take effect in October, but with SP and NCP voting together on the matter, it is guaranteed easy passage in the National Assembly.