Joint Stock Company “Liepajas Metalurgs” informs that the company’s Board has approved the plan for production cost optimization by 3,7 million LVL and optimization of administrative cost by 0,5 million LVL, as well as reduction of sponsoring expenses by 0,5 million LVL.

In April this year vacant staff units are being reduced and employment relations severed with work personnel on the basis of mutual agreement that amount to overall 80 staff units and will additionally give 49,6 thousand LVL of monthly savings.

The monthly salary schedule including the employer’s social tax is reduced by LVL 113 000 starting from April that is equal to average salary of 188 employees in Joint Stock Company “Liepajas Metalurgs” including the employer’s social tax.

Additionally at this moment the planning and discussions are under way to reduce 229 staff units.

In relation to the situation in the European metallurgical market and absence of the working assets the principal production processes of Joint Stock Company “Liepajas Metalurgs” are suspended from 19.04.2013. During this time the work personnel are involved in the equipment maintenance and repair work.

At the same time we would like to inform you that on 19.04.2013 JSC “Liepajas Metalurgs” turned to the Treasury and Ministry of Finance of the Republic of Latvia with a request to make a payment in the name and on behalf of JSC “Liepajas Metalurgs” regarding repayment of loan basic sum in the amount of EUR 6 128 456.38 to “UniCredit S.p.A.” bank, furthermore the company assured of their determination to take possible measures to find a way to make the interest payment in the amount total EUR 1 855 867.42

Līga Šenfelde
Assistant of chief Economist
63455926, shenfelde@metalurgs.lv