Nikopol Ferroalloy Plant threatens to stop production in case of non -granting electricity benefits

The largest company for the production of ferroalloys in the Nicopolis, the NIZF, requires a “fair” tariff for electricity - such as the Zaporizhzhya and Stakhanov Ferroalloy Plants. Otherwise, the company will be forced to stop production and dismiss about 7 thousand personnel. About this to journalists - participants of the media at the NZF said the chairman of the board of the plant Vladimir Kutsin.

“We hope to resolve our issue. But in the case of force majeure, that is, not solving this issue, this may lead to a stopping the plant, ”Kutsin said.

The enterprise recently entered the energy audit and the conclusions of experts were inexhaustible.

According to Kutsin, as a result of the fact that the company buys electricity at the usual prices of sixteen furnaces in the work only five and soon they will also have to stop them.

The NZF insists that its activities are subject to the memorandum, which was imposed by the government with the rest of the electrometallurgical enterprises of Ukraine allowing these enterprises to pay for electricity at economically justified tariffs until the end of 2013.

“We demand a fair tariff for electricity - along with the tariff, according to which electricity is exported, and with the tariff for the Zaporizhzhya and Stakhanovsky ferroalloy plants,” Vladimir Kutsin emphasized.

PJSC “Nikopol Ferroalloy Plant” is the largest enterprise for the production of Silikomargans and Feromargansts in Ukraine. Uses imported and domestic raw materials for the production of ferroalloys.

The production capacity of the enterprise is 1 million 200 thousand tons of ferroalloys. The share of electricity in the cost of NPF products is about 34 percent, and its volume of its consumption is 192 million kW/h.

The NPF is controlled by the Privat and Eastone groups (both - Dnepropetrovsk). According to the enterprise at the end of 2011, Sofalon Investments limitad owned 15.503 percent of PJSC shares, Rugella Properties Ltd - 15.866 percent, venue consulting LTD - 18.216 percent, Sonerio Holdings LTD - 15.69 percent, Manjalom limited - 10.103 percent, Treelon Investments limited (all - Cyprus) - 15.101 percent.