The Industrial Urals-The Polar Urals Corporation might buy Rezhnickel, Ufaleynickel

The agenda of the latest meeting chaired by Deputy Plenipotentiary Representative of Russian Federation President in Ural Federal District Alexander Sidorov covered issues related to the need to normalize things at Ufaleynickel and Rezhhnckel. The meeting was attended by Deputy Head of Sverdlovsk Region Governmentand Minister for Industry & Science Alexander Petrov.

Petrov said that Rezhnickel’s problems would be solved in several stages.

‘First and foremost, the ministry will keep on cooperating with Russia’s Federal Tariff Service regarding discounts on the railway shipment of raw materials for Rezhnickel. Then, it was decided to facilitate the restructuring of Ufaleynickel’s debt to the government reserve. The President’s representation in Ural Federal District, Sverdlovsk Region Government, and Chelyabinsk Region Government will go on meeting the proprietor and the management of both enterprises regarding the transfer of the assets in question. The options at hand are the transfer of the enterprise to a private owner or handing over a 100% stake in the business to The Industrial Urals-The Polar Urals Corporation which acts on the government’s behalf,’ the Minister said.

Last week, Rezhnickel issued an order stating that 833 workers (out of 1,400 total) would be laid off. The reason given for the decision was the dropping nickel prices on the global market and the resulting shrinking production outputs.

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