Mechel announced the suspension of production in Romania and Ukraine

Starting from November 21, 2012, metallurgical production is temporarily suspended at the Romanian factories "Mechel Tyrgovishta" and "Dactil Style Oral Rosh." Also, after the implementation of the production program, on November 27, 2012, rolling production on Mechel Tyrgoviste will be temporarily suspended, from December 15, 2012 it is planned to temporarily suspend the rolling and metered production at Dactil Style Buzau, Laminorul Brail and Kympa Tourziya, the press center of the Swords group reports.

The production of steel at the Donetsk electrometallurgical plant is also temporarily stopped in connection with the increase in production costs and a decrease in its profitability associated with a steady increase in prices for the main raw materials of the plant - scrap of ferrous metals - amid the seasonal accumulation of its reserves by the Ukrainian missile defense systems.

Nikolai Yushkin, Deputy Head of the Donetsk Electrometallurgical Plant, said that the plant was closed due to a lack of working capital, three quarters of the workers were sent on a paid vacation with the preservation of two-thirds of wages, the remaining 25% of the employees will continue to work, maintaining full labor remuneration.

The company "Mechel" guarantees the remuneration of employees employees in events aimed at maintaining the performance of equipment during downtime. The rest of the workers who are not engaged in regulatory work will be paid the downtime or vacation in accordance with labor legislation.

With the improvement of the market conditions and the growth of sales of the metal rolling, Mechel promises to immediately restore production processes at stopped enterprises.

As we are already reported , some improvement in the steel market is expected no earlier than the middle of the next year.