REG - Evraz Plc - EVRAZ Suspends Operations of South African Mill
EVRAZ SUSPENDS OPERATIONS OF ITS SOUTH AFRICAN MILL
18 July 2012 - EVRAZ plc (LSE: EVR) (the Company) announces the temporary suspension of operations at EVRAZ Highveld Steel and Vanadium (South Africa) following the start of an industrial action announced by EVRAZ Highveld's largest union NUMSA.
The action stems from a notice issued by the Company regarding possible retrenchments as a result of a fixed cost reduction initiative, as well as from a reorganisation of the labour force to switch to a law compliant 4-shift working schedule.
EVRAZ is making every effort to meet its obligations to its suppliers and partners but under the circumstances cannot fully guarantee the stability and continuity of EVRAZ Highveld's products supplies, including supplies of vanadium slag and vanadium products.
The management of EVRAZ is committed to commence the negotiations with NUMSA in order to reach a mutually acceptable agreement.
As EBITDA of EVRAZ Highveld in 2011 represented less than 1% of consolidated EBITDA of EVRAZ plc, the labour actions in South Africa are not expected to have a material effect on the financial performance of EVRAZ.
For further information:
Director, Investor Relations
London: +44 207 832 8990 Moscow: +7 495 232 1370
VP, Corporate Communications
London: +44 207 832 8998 Moscow: +7 495 937 6871
EVRAZ is a vertically integrated steel, mining and vanadium business with operations in the Russian Federation, Ukraine, USA, Canada, Czech Republic, Italy and South Africa. EVRAZ is among the top 20 steel producers in the world based on crude steel production of 16.8 million tonnes in 2011. In 2011 EVRAZ sold 15.5 million tonnes of steel products. A significant portion of the company's internal consumption of iron ore and coking coal is covered by its mining operations. The company's consolidated revenues for the year ended 31 December 2011 were US$16,400 million and consolidated adjusted EBITDA amounted to US$2,898 million.
This information is provided by RNS
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