Vysokogorskiy’s product prices halved, Evraz Group says

15 June 2009 (10:08)

Most of Evraz Group’s members went through their greatest output downfalls (down to 50% in some cases) in the last quarter of 2008, with figures gradually rising in the first quarter of 2009, the holding’s Vice President Dmitriy Sotnikov said at a meeting with Governor of Sverdlovsk Region Eduard Rossel.

The holding now employs 2,000 fewer people compared with last fall, with 500 more employees soon to be made redundant at Vysokogorskiy Ore Mining and Processing Enterprise (VGOK). The Governor said, however, that such redundancies were unacceptable.

VGOK is just breaking even at the moment, with product prices plummeting by 50% to 60%. To make matters worse, Russian Railways Public Company has been ordering less from them, so the company finds itself in a worse financial state than before.

In addition, Evraz Group’s representatives say their Nizhniy Tagil Iron & Steel Works (NTMK) owed 10.4 billion RUR to its creditors at the beginning of the crisis, but they managed to reduce the debt by 800 million RUR early in 2009.

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