Russia's Rusal shuts down Nadvoitsky plant due to US sanctions
MOSCOW – Russia's Rusal, the world's largest aluminium producer outside China, has started shutting down production at one of its smaller plants as a result of US sanctions on the company, Rusal representatives said on Monday.
Operations at the Nadvoitsky aluminium smelter in Russia's Karelia region cannot continue as the plant lost access to its end market and to a steady supply of raw materials ever since Washington imposed sanctions on Rusal on April 6, the company said.
Under the sanctions, designed to punish Moscow for its alleged meddling in the 2016 US election, US customers must wind down business with Rusal by October 23.
Production at the Nadvoitsky plant was completely oriented towards the US market, Rusal said.
"As a result, since April 2018, Nadvoitsky has been sending all of its production to stock, generating significant losses", a company representative said in a comment to Reuters.
"Rusal was forced in August to begin closing down electrolysis pots at Nadvoitsky," Rusal said.
The plant has a workforce of 343 people and is the primary source of employment in the town of Nadvoitsy, which lies 485 km north of St Petersburg, according to data from the state Monotown Development Foundation.
"Employees of the plant will not suffer despite (the shutdown), as the company will take an individual approach staff job placement," Rusal said, adding that employees will either be offered jobs at a different company, assisted with finding work in other parts of the country, or provided with a pay-out agreed by both sides.
"The company ... will provide each person with the opportunity to remain employed, primarily as part of the project to reprofile Nadvoitsky and create profitable businesses using the plant's infrastructure," Rusal said.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
