Authorities of the Kazakhstan’s large steel company ‘Pavlodar’ link axing of over 400 employees of the steel plant with suspension of its export to Iran, Tengrinews.kz reports citing deputy head of entrepreneurship and industry department of Pavlodar oblast Myrzazhan Ussenov.
“Everything that has happened is a force-majeure, because the economic sanctions imposed on Iran had an effect on the Steel Casting company. A major part of its export was to Iran. Right now, in the end of the year, it is difficult for them to refocus their export and find new sales directions,” Ussenov said and noted that the oblast administration and the company were taking measures to help the axed employees find news jobs elsewhere.
“The plant’s management gave us a list of 307 people to be fired. We have met with Director General of Casting company Vitaliy Chevtayev. We are looking for vacancies for people to be fired. They are all registered and we have filed the requests to the Employment Center to organize trainings, retrainings and improvement of qualifications under Employment-2020 state-run program for them,” he said.
According to him, the oblast administration has also sent letters to heads of companies of all oblasts of Kazakhstan asking them to support the plant by selling and buying the goods produced by the steel plant. “Besides, the company’s management is considering modernization to become competitive. They are also looking into expansion of the product line,” Ussenov stressed.
Earlier Tengrinews.kz English reported that the Steel Casting Plant in Pavlodar would axe 471 jobs starting from December 15. The company’s management explained that the cuts were a forced step caused by a decrease of demand for the plant’s products and its shrinking production volumes. Due to the difficult economic condition of the company related to a sharp deterioration of the situation in the steel markets and decreasing production volumes, the casting company announced a forced downtime from October 1 to November 15. Later the plant introduced a part time work schedule after sending written notifications to the employees.