Kazakhstan's Rakhat cuts sales, staff on inflow of Russian confectionery
ALMATY. March 3 (Interfax) - Kazakhstan's Rakhat Confectionary factory cited falling sales due to the inflow of Russian goods as a reason for laying off 286 employees.
Company sales fell 20% in February. The question of cutting down salaries and trimming personnel have been considered as a possible response measure for quite some time by now, Rakhat press office said.
The devaluation of the Russian ruble had an adverse impact on the company's performance through an inflow of cheap Russian confectionary goods to the Kazakh market. Rakhat products, that have been in demand for its high quality and organic components, have failed to compete with the Russian goods, which in general cost 30%-60% less.
Despite the unfavorable economic situation, Rakhat continues building the Shymkent biscuits factory scheduled for launch in September.
The company also plans to expand exports to the CIS and other countries.
As at July 1, 2014, South Korean LOTTE Confectionery had a 79.83% stake, Sweet City LLP - a 6.53% stake and Chairman of the Board of Directors of Bayan Sulu confectionery plant in Kostanai Yerlan Baimuratov - a 6.09% holding in the confectionery factory.
JSC Rakhat, opened in 1942, produces over 250 confectionery products, exported both to the CIS and other countries, including Russia, Germany, Mongolia, Tajikistan, China and Afghanistan.