Russia Far East only steel maker plans to produce 1 mln tns of metal

VLADIVOSTOK, Apr 26 (PRIME) -- Amurmetall, the only steel producer in Russia’s Far East, plans to reach production capacity of one million tonnes per year soon, the Khabarovsk Region’s Head Vyacheslav Shport said on Wednesday during an annual report to the region’s lawmakers.

In February 2015, Amurmetall plant was undergoing bankruptcy, and put to auction at a price of 9.07 billion rubles. The auction failed due to the lack of bids. In October 2016, the government cut the price to 2.9 billion rubles, and planned to slash it even further to 2.467 billion rubles on the lack of bids.

But in January 2017, resident company of the Khabarovsk advanced development territory Torex bought the plant.

“The government of the region is in close cooperation with the company (Torex), the process of transition is going on,” Shport said.

“We have agreed that no mass layoffs will take place. The plant’s staff amounts to 4,000 people, and the main thing is that the plant is working. The new owner has set the target of producing up to 100,000 tonnes of steel per month this year, and we support it. The target for 2018 is at least 750,000 tonnes. The general goal is one million tonnes.

“We are now preparing preferences for an investment program to upgrade the plant under a ruling of the presidential envoy to the Far East Federal District Yury Trutnev. The transition process should finish in May–June.”

(55.8453 rubles – U.S. $1)

End