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EVRAZ Suspends Operations at its South African Mill
07/19/2012 - EVRAZ plc announced the temporary suspension of operations at EVRAZ Highveld Steel and Vanadium in South Africa following the start of an industrial action announced by EVRAZ Highveld’s largest union NUMSA.
EVRAZ plc announced the temporary suspension of operations at EVRAZ Highveld Steel and Vanadium in South Africa following the start of an industrial action announced by EVRAZ Highveld’s largest union NUMSA.
The action stems from a notice issued by the company regarding possible retrenchments as a result of a fixed cost reduction initiative, as well as from a reorganization of the labor force to switch to a law compliant 4-shift working schedule.
EVRAZ is making every effort to meet its obligations to its suppliers and partners but under the circumstances cannot fully guarantee the stability and continuity of EVRAZ Highveld’s products supplies, including supplies of vanadium slag and vanadium products.
The management of EVRAZ is committed to commence the negotiations with NUMSA in order to reach a mutually acceptable agreement.
As EBITDA of EVRAZ Highveld in 2011 represented less than 1% of consolidated EBITDA of EVRAZ plc, the labor actions in South Africa are not expected to have a material effect on the financial performance of EVRAZ.
