NLMK to stop funding La Louviere, unless restructuring deal is reached
MOSCOW. Nov 29 (Interfax) - OJSC Novolipetsk Steel (NLMK) is ready to stop funding its metal-rolling plant Duferco La Louviere in Belgium at the end of the year, if it cannot reach a deal with workers about restructuring the company.
"We openly invited trade unions to agree on a restructuring plan, we told them all about the current situation and the need to restructure to achieve a company that is not making losses," a company representative told Interfax. According to unofficial figures, losses could reach 100 million euros in 2012 due to the poor market condition and weak demand for steel in Europe.
One of the local press outlets reported that restructuring measures include sacking up to 400 out of 950 staff and cutting hours for the remaining staff Another publication said 601 out of 1,357 staff might lose their jobs.
NLMK announced plans to cut around half the personnel at La Louviere in October, the press reports. Later NLMK announced there were delays in paying salaries and the deferment of bonuses of 600 euros per person. All this led to work stoppages and strikes: the workers blocked entry to the plant and highways in the town of La Louviere.
Duferco La Louviere S.A. was one of the companies in the joint venture between NLMK and Belgian Duferco - Steel Invest & Finance. Later in an asset split the plant went to the Russian company.