Metinvest, the largest Ukrainian mining and metallurgical holding, is forced to reduce the implementation of its investment program in 2019 due to the severe global crisis over the past ten years. According to a company’s report, metallurgical industry is entering the toughest global crisis in ten years. Many metallurgical companies in the world are already operating with losses and are forced to cut production and personnel.
“Given a lack of financial resources and disappointing forecasts regarding further steel prices, Metinvest Group has developed an action plan that will help overcome the difficult economic situation with minimal losses,” the report says.
It says that Metinvest is forced to reduce the implementation of the investment program in 2019: the implementation of certain projects, except for critical ones provided for by the technological strategy, and projects with significant environmental effects will be suspended. In addition, an optimization program will be implemented to reduce fixed and administrative costs.
The group is forced to suspend staff recruitment for existing vacancies and limit the recruitment of people to the position of employees who have decided to quit, with the exception of critical professions. The matter does not concern mass cuts in production: optimization measures will concern, first of all, the administrative staff and the management company. At the beginning of 2020, administrative staff will be reduced by 30%. At the same time, employment programs for employees will be developed jointly with the city authorities.