RusAl Halts Production at Volgograd Plant

RusAl, the world's largest aluminum producer, has begun its manufacturing cuts, notifying the management at its Volgograd plant that it must cease output within the next few months.

"The management of the Volgograd aluminum plant already received an official notice from RusAl to fully cease aluminum output and freeze the plant by October 30," the regional government's press service said Friday in comments carried by Prime. Manufacturing can later be resumed.

The move involves massive layoffs at the plant, with only 10 percent of the 3,000 person staff remaining at the facility for maintenance purposes.

Some of the employees facing cuts will be offered moves to other RusAl facilities, while the rest will need help re-skilling and finding other employment, the statement said, adding that the regional government, representatives of the plant's management and labor unions are seeking to resolve the issue.

RusAl's CEO Oleg Deripaska said earlier this week that the company intends to halt production at a number of its plants by the end of this year to retain profit amid a worsening macroeconomic situation and falling aluminum prices. The facilities will be reactivated as soon as the price of aluminum reaches $2,400 per metric ton, up from the current $1,800, he told Interfax.

The commodities industry has been hit by falling prices, with RusAl seeing its market value plunging by 45 percent since the beginning of 2013.