Thursday, June 21, 2018

RUSAL warned against mass firing at Urals plant

The Sverdlovsk Regional Prosecutor's Office has issued a warning to Oleg Deripaska, the owner of RUSAL, over the situation at Bogoslovsk Aluminum Smelter, where the company is considering putting an end to its electrolytic production.

"The regional prosecutor's office is holding an inspection in light of the planned termination of employees at the smelter," the office said, RAPSI reports. "During the inspection, the regional prosecutor issued a warning on August 31 to RUSAL CEO Deripaska on the inadmissibility of breaching federal law."

RUSAL's board has approved the reducing of aluminum production by 275,000 tons. The Bogoslovsk smelter, which employs 1,000 people, is no longer profitable, the company argues, due to high power tariffs.

A commission of the company's representatives, local ministers, prosecutors and the city administration are working to resolve the situation, according to RAPSI.

RUSAL's Global Management B.V. Director for Government Relations said that if the power tariffs are reduced, RUSAL could construct a new electrolytic facility at the plant for $1.4-1.5 billion.

The company does not plan to fire workers, the company said, adding that it will offer them jobs at other facilities. Workers, meanwhile, have held two rallies protesting the closing of the plant's electrolytic facility, RAPSI reports.

RUSAL is the world's largest aluminum producer, accounting for 10 percent of the world's aluminum and alumina output. With operations in 19 countries, RUSAL sells its production in Europe, North America and Southeast Asia.