Russias largest ferroalloy manufacturer will move to a four-day workweek for its administrative personnel beginning Sept.
1, the Kommersant service daily reported Monday, as the nations metallurgical market continues to grapplewith installing financial pressures.The Chelyabinsk Electrometallurgical Plant (ChEMK), which produces 80% of the countries ferroalloy utilized in steelmaking, attributed the move to substantial variations in currency exchange rate, adverse market conditions for ferroalloys and a notable reduction in need from industrial clients.The company stated these factors have required the launch of an anti-crisis program.From September 1, all administrative workers in structural divisions will transition to a reduced schedule that will stay in effect through completion of 2025.
There are no planned layoffs, the plant said in a press statement.The updated workweek will be executed for 1,200 employees.Company officials stated that a return to the basic schedule is possible should market conditions and currency variations stabilize.ChEMK was nationalized in 2024 after a court in the Sverdlovsk region bought the transfer of shares in ChEMK, Serov Ferroalloy Plant and Kuznetsk Ferroalloys companies that comprised the ChEMK Group to the Russian state.The Prosecutor Generals Office accused their previous owners, the Antipov household, of illegally privatizing the properties and exporting items to so-called hostile nations, a move deemed damaging to nationwide interests.The business had been managed by JSC Etalon, a property firm connected to billionaire Yuri Antipov, who was later detained for fraud following the nationalization.Administration of the assets was moved to the Federal Property Management Agency (Rosimushchestvo).
According to SPARK-Interfax, ChEMK generated income of 81.5 billion rubles ($1 billion) in 2023 however ended the year with a bottom line of 519.4 million rubles ($7 million).
Russias metallurgical industry has actually been struck hard by magnifying international sanctions, the loss of export markets and the Central Banks 20% essential interest rate.Data from the Yakov and Partners speaking with group shows thatRussias steel exports declined by 11 million tons between 2021 and 2023.
Domestic demand dropped 6% in 2024, and the Russian Steel Association alerts it might fall by another 5% in 2025.
Steel production declinedby 8.6% in 2024, the steepest decrease amongst the worlds top steel-producing nations, and dropped an additional 5.2% between January and May 2025, data from the World Steel Association shows.Alexander Shevelev, CEO of Russian steel giant Severstal, estimatedthat domestic steel need might be up to 39 million heaps, below the existing 43-45 million loads range, by the end of this year.Industry and Trade Minister Anton Alikhanov saidin June that the government is dealing with tax relief procedures for the sector.
One proposal would raise the price limit for the excise tax on liquid steel presently 30,000 rubles ($380) per lot starting in 2026.
Metallurgy stays a vital element of Russias economy, using over 600,000 people and accounting for 10% of the nations export incomes.