According to a statement issued by Russia's Kemerovo regional administration citing Mr Aman Tuleev Kemerovo governor, West-Siberian Steel Works and Novokuznetsk Iron and Steel Plant two Kemerovo region based subsidiaries of the Russian steelmaker and iron ore producer Evraz Group may lay off about 1,000 people by the end of the current year.

Accordingly, the workers who are to be dismissed will receive unprecedented measures of social support. The compensatory payments may range from RUB 90,000 to RUB 200,000 per person, with a fund for the support of small business companies also to be created. Evraz and the Kemerovo administration are to contribute RUB 300 million and RUB 100 million respectively to this fund which will give a chance to laid-off workers to create their own businesses.

In addition Mr Tuleev stated that measures for the employment of laid-off persons of working age at other big production facilities in Novokuznetsk city will be also taken.

As SteelOrbis previously reported in the beginning of September this year, Evraz announced that due to the improved demand accompanied by higher pricing for steel products from its traditional international markets, particularly Southeast Asia, the Middle East and North Africa, from July 1st this year it has achieved full capacity utilization across its Russian operations ie representing about 13.5 million tonnes of crude steel per year.

According to reports, in the H1 of 2009 Evraz laid off about 3,900 workers at its Russian operations and undertook measures to cut staff expenses by 32% in dollar terms compared to the same period of last year.

(Sourced from SteelOrbis)
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