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"Liepajas metalurgs" halts primary production until April 15

Photo: LETA.
 VENTSPILS, April 11 - The financially-troubled metallurgical company "Liepajas metalurgs" has temporarily halted primary production until April 15; after the company resumes operations, it will be running at 30 percent capacity, as "Liepajas metalurgs" CEO Valerijs Terentjevs told reporters after a meeting with Liepaja City Council members today
According to Terentjevs, this is "due to many things, including insufficient current assets".

"At the moment our current assets are the same as before the modernization. But before the modernization our annual output was 550,000-600,000 tons, whereas now it is 900,000 tons. This is almost 30 percent, but the amount of current assets is the same as before the modernization. Of course, this is not enough," said Terentjevs.

"Liepajas metalurgs" is currently working on the optimization of production and administration costs, as the company's management informed Liepaja City Council's Development Committee members today. The company's board is to approve the optimization strategy next week.

Terentjevs confirmed that "Liepajas metalurgs" would have to lay off 8 percent to 10 percent of workers.

During the meeting of Liepaja City Council's Development Committee, Terentjevs and "Liepajas metalurgs" chief economist Beinta Imbovica informed the local government about the situation at the company.

Also today, NASDAQ OMX Riga stock exchange decided to resume trading in "Liepajas metalurgs" shares starting today.

The company has submitted its commentaries on the price-sensitive information disclosed in mass media, therefore the company has eliminated the reasons, based on which trading was suspended, the stock exchange informs.

At the same time NASDAQ OMX Riga decided to immediately apply observation status to "Liepajas metalurgs" shares.

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