ZMZ has hardest time of all, Sumin says

15 June 2009 (09:54)

Governor of Chelyabinsk Region Petr Sumin held a meeting on Zlatoust Metallurgical Plant’s (ZMZ) problems. The meeting was attended by Chairman of the regional Legislative Assembly Vladimir Myakush, Deputy Governor Yuri Klepov, Minister for Industry Evgeniy Teftelev, and Mayor of Zlatoust Dmitriy Migashkin. As for the plant, the General Director of Estar Group Mikhail Rakov, his first Deputy Nikolai Kamyshev, CEO ZMZ Sergey Khomyanin and ZMZ’s Chairman of Trade Union Marat Safiev were present.

Sumin declared the current situation was unacceptable.

‘The crisis has affected the region’s entire metallurgical industry dramatically, but ZMZ is having the hardest time of all,’ he said. The Governor explained such a production facility could not afford a stoppage, so he insisted that all the major departments should be re-launched as soon as possible, with all the wage arrears eliminated.

The spokesperson for the Governor reports Estar representatives assured the official they intended to re-launch the steel-smelting shop on June 15-18, 2009, whereas the rolling mill would resume operating on June 25, 2009. This would provide jobs for 4,000 out of the plant’s 7,000 workers. As for the wage arrears (about 100 million RUR altogether), the management intended to make them their top priority payment. The major bulk (May’s 65 million RUR worth of wages) would be paid before June 26, 2009, with the rest to be paid off in July. Then, one martin furnace shop is expected to be launched in August, which should cause the plant’s current output to double. In the meantime, the spare workers would be made useful through community service.

The Governor, in his turn, decided to help the plant negotiate with its debtor KAMAZ that hasn’t paid for the supplied metal stuff and the plant’s creditors (the power and natural gas suppliers). Sumin also agreed to support the plant’s social infrastructure (the swimming pool, children’s sanatorium, and the boiling house) with the region’s budget resources for the time being.

What is more, the Governor made sure the dwellers of Zlatoust had their hot water supply and functional public transport again.

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