RusAl Halts Production at Volgograd Plant
- The Moscow Times
- Aug. 12 2013 00:00
- Last edited 16:50
RusAl, theáworld's largest aluminum producer, has begun cutting manufacturing capacity, notifying theámanagement atáits Volgograd plant that it must cease output within theánext few months.
"The management ofáthe Volgograd aluminum plant has already received anáofficial notice fromáRusAl toáfully cease aluminum output andáfreeze theáplant byáOctober 30," theáregional government's press service said Friday inácomments carried byáPrime. Manufacturing can later be resumed.
Theámove involves massive layoffs atáthe plant, with only 10 percent ofáthe 3,000 person staff remaining atáthe facility forámaintenance purposes.
Some ofáthe employees facing cuts will be offered moves toáother RusAláfacilities, while theárest will need help re-skilling andáfinding other employment, theácompany said, adding that theáregional government, representatives ofáthe plant's management andálabor unions are seeking toáresolve theáissue.
RusAl CEO Oleg Deripaskaásaid earlier this week that theácompany intends toáhalt production atáa number ofáits plants byáthe end ofáthis year toáretain profit amid aáworsening macroeconomic situation andáfalling aluminum prices.
Theáfacilities will be reactivated as soon as theáprice ofáaluminum reaches $2,400 per metric ton, up fromáthe current price of about $1,800, he told Interfax.
Theácommodities industry has been hit byáfalling prices, with RusAl seeing its market value plunge byá45 percent since theábeginning ofá2013.