Amurmetall OAO Shuts Down Due to Losses-Interfax

Tuesday, 18 Jun 2013 02:46am EDT 

Interfax reported that Amurmetall OAO (Amurmetall) has shut down production and put some of its employees on forced leave, the Company said. Due to the low workload, operating losses in the first four months of 2013 totaled RUB 496 million. In light of the depletion of its own working capital and the absence of credit, Amurmetall stopped production in its key production divisions, the statement said. Production of continuously cast billets in the electric-furnace shop was halted on June 6 and the plant suspended preparation of scrap, production of lime and preparation of carbonizer, and production of finished products in the long products division was shut down on June 10. Most of the plant's workers have been put on forced leave, the statement said. The Company said that, due to the suspension of credit from its owner Vnesheconombank (VEB) on April 1, 2012, the plant failed to lay in a winter reserve of scrap metal last fall and was forced to operate at a level of technological survival, at less than a third of capacity. However, Amurmetall said it plans to meet all obligations to suppliers and buyers, despite the shutdown. A source at the Company told Interfax that the plant now has 3,927 employees, 786 of which have been put on forced leave and another 1,070 are on leave with three-quarters pay. Amurmetall, which produces long and flat steel products, operates on scrap metal. The Khabarovsk Arbitration Court put the plant under supervision on August 30, 2012. 

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