The MACON brick factory is under a threat of closure due to disloyal competition with a similar enterprise from Transnistria.

MACON Legal Department Director Vladislav Macovei told a press conference at Infotag on Tuesday that such an alarming situation arose due to the increase in the price of natural gas and the difference between energy prices on the right and left banks of the Dniester.

“The Tiraspol brick factory pays 67 euros per a thousand cubic meters of gas, while MACON has to pay 620 euros. That is, the gas consumed by our company costs us 9.5 times more. The Tiraspol manufacturer sells its bricks for 3 lei per a piece, including delivery to the buyer, i.e. 40-60% below the lowest-possible price MACON can offer,” he said.

According to Macovei, in previous years, MACON was also in a disadvantageous position compared to the Tiraspol plant, but after the increase in the gas tariff, the situation worsened greatly, and the enterprise has found itself on the verge of closure.
“Now, in order to cope with the new gas tariff, MACON needs to allocate an additional 40 million lei per year, which is practically unrealistic. This means that we risk losing our share of the Moldovan brick market - about 50%. This segment will be occupied by the Tiraspol plant, which does not pay taxes to the Moldovan budget. And the Moldovan State will lose about 20 million lei, which MACON annually pays in taxes and fees,” said Macovei.

According to him, the Tiraspol factory produces about 18 million bricks a year, but sells only 8% of its produce in Transnistria, operating through shady companies and evading taxes.

“We just want state institutions to perform their duties, and we could continue our activities, providing jobs for 320 people and paying taxes to the budget of the republic,” Macovei said.