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"Liepajas metalurgs" plans to lay off 8%-10% of workers

 RIGA, April 10 - The situation in the metallurgical industry continues to grow worse, as a result "Liepajas metalurgs" is planning to make 8 percent to 10 percent of workers redundant, newspaper "Dienas Bizness" reports today.

At the moment, the heads of all the structural units of the company are working on labor force optimization proposals.

"April 10 is the payday at the company, and we are literally scrabbling about for money so we could pay our workers on time," "Liepajas metalurgs" council chairman and majority shareholder Sergejs Zaharjins tells the newspaper.

This past January, "Liepajas metalurgs" was working in full capacity, but in February and March - only at 60 percent of its capacity, and the company's operations will be further scaled down in the coming months.

There is a deep crisis in the global steel industry at the moment, Zaharjins explains. The downturn continues, and first positive changes could be expected at the end of the year.
As reported, "Liepajas metalurgs" said in a statement released on Tuesday that it hoped the Cabinet of Ministers would find a way to support the company which is experiencing temporary problems, as well as the company's staff of 2,3000 and another 15,000 workers in related companies. Thanks to them, the company's annual turnover is EUR 430 million, the company exports 98 percent of its products, and it paid LVL 9.4 million in taxes in 2012.

Previously "Ernst&Young" audit report said that "Liepajas metalurgs" was on the verge of insolvency. Depending on various circumstances, "Liepajas metalurgs" will be short LVL 96.1 million at the end of 2013, says the report.
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