Home
$1 =
 38.3724 RUR
-0.3334
€1 =
 49.6923 RUR
-0.3659
Search the Archives:
Today is Sep. 18, 2014 07:36 AM (GMT +0400) Moscow
Forum  |  Archive  |  Photo  |  Advertising  |  Subscribe  |  Search  |  PDA  |  RUS
FORD
Business
Open Gallery...
One of the countrys giants, Magnitogorsk Iron & Steel Works is lowering production by 15 percent and reducing the number of employees by 10 percent starting from October.
Photo: Dmitry Lebedev
Other Photos
Open Gallery... Open Gallery... Open Gallery...  
Business
Ad Market to Dip in 2009
Gazprom Builds Big Gas Reservoir
Serbia Lets the Gas In
Peugeot Plans Sales Spike in Russia
Ukraine Ready to Winter With No Gas of ...
Readers' Opinions
You are welcome to share your opinion on the issue.
Oct. 08, 2008
Print  |  E-mail  |  Home
Iron Industry Reduces Output
The financial crisis has hit the metal market of Russia. One of the countrys giants, Magnitogorsk Iron & Steel Works is lowering production by 15 percent and reducing the number of employees by 10 percent starting from October. Although other metal blockbusters have acknowledged neither production decline nor reduction of staff for the record, all of them (except Mechel) dont cross out the possibility.
First of all Russias metal makers, Magnitogorsk Iron & Steel Works acknowledged yesterday the effect of the global financial crisis on its business. In the wake of abrupt decline in global markets prices for ferrous and nonferrous metals, exporting metal doesnt yield profit today, said Vladimir Shmakov, vice president of MMK Asset Management Company. So, the plant lowers production by 15 percent, while the order volume has dropped 40 percent. As a result, up to 3,000 employees of MMK (of 30,000 employed overall) will be left without any work and the management is looking for the opportunities to employ them.

Other metal makers are more cautions in statements. Novolipetsk Iron and Steel Works (NLMK) has confirmed that demand for the semi-finished products abruptly declined in late September, mostly because of the lower demand from Europe and the United States. Severstal is analyzing the situation and Evraz Group speaks of the need to optimize production plans for October and November in view of tough conditions on domestic and foreign markets.

The analysts dont foresee any improvement before year-end. We will probably witness production reduction of 20 percent to 25 percent at Russias biggest metal companies, says Olga Okuneva from Deutsche Bank, while Dmitry Parfenov from Prospect predicts the metal industrys turmoil to continue for a year and a half or two years.

But nonferrous-metal producers are still optimistic the poor market opportunities of a few recent months notwithstanding. RUSAL said they had launched optimization efforts in early 2008 and were able to operate up to the business plan, and Norilsk Nickel didnt intent to revise the production schedule yet.
www.kommersant.com

All the Article in Russian as of Oct. 08, 2008

Print  |  E-mail  |  Home

Forum  |  Archives  |   Photo  |  About Us  |  Editorial  |  E-Editorial  |  Advertising  |  Subscribe  |  Subscribe to Printed Editions  |  Contact Us  |  RSS
1991-2014 ZAO "Kommersant. Publishing House". All rights reserved.