Donetsk Electrometallurgical Plant stops production

The Donetsk Electromechanical Plant (DEMZ) was forced to stop the work of the crimping workshop in connection with adverse market conditions, the DEMZ press center reports.

The Russian company Mechel, which belongs to the plant, made the corresponding decision taking into account "long negative trends" in world steel markets.

Another reason for stopping DEMZ was bad forecasts for the restoration of metal rolling markets and high prices for metallurgical raw materials.

Problems at an electrometallurgical plant in Donetsk began back in November last year, when Mechel's leadership announced the introduction of the Production Prostea regime for the period from December 1, 2012 to April 1, 2013. These measures were explained by the increase in costs, the loss of production and the lack of real demand for the products of the metzavor.

The release of employees of the crimping workshop and auxiliary industries and services related to this workshop will be carried out in full accordance with the labor legislation of Ukraine, the enterprise emphasizes.

The swordsman group has not yet commented on this message. As we reported, DEMZ was put up for sale as a non -core asset. This decision was made by the board of directors of Mechel on September 21, 2012. Earlier, the company reported plans to close most of the transactions for the sale of assets in the first half of 2013.

The Donetsk Metallurgical Plant has already changed its owner several times. The Mechel group acquired it from the company Estar, which in turn bought a plant from the Istil Pakistani company. The performance of DEMZ units is a million two hundred thousand tons of steel per year.