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Head of Karelia negotiated preservation of stable work of the largest enterprises of the republic

On November 19 after participation in the session of the State Council in Izhevsk where the complex of measures for development of national competitiveness under conditions of the world financial crisis was discussed, Head of Karelia Sergey Katanandov has flown to Moscow where he has held negotiations directed on preservation of stable work of the largest enterprises of the republic.

In particular, Sergey Katanandov has met with Chairman of Board of Directors of RusAl United Company Victor Vekselberg. Future of Nadvoitsy Aluminium Factory located in Segezha region of the republic and is a part of the aluminium division of RusAl company was discussed at the meeting.

In 2008 NAF has managed to keep its manufacturing output. However, because of sharp reduction of aluminium prices the enterprise's proceeds decrease, and it may pass in the category of unprofitable. It causes a threat to stable work of the factory. Director General of Nadvoitsy Aluminium Factory Yury Moiseyev has even declared possible consideration of conservation of the factory, although, later this information has been denied by the press-service of RusAl.

At Sergey Katanandov's meeting with Victor Vekselberg it has been once again confirmed, that it is no question about any conservation of Nadvoitsy Aluminium Factory, – the enterprise in Nadvoitsy will continue operating. Head of Karelia and Chairman of Board of Directors of RusAl UC have enterd arrangements that the Government of Karelia will continue teamwork with the company on maintenance of NAF's stable activity in 2009. Alongside with continuation of functioning of the factory, Sergey Katanandov has defined preservation of the staff and banning of sharp reduction of the personnel of the enterprise as the main tasks.

Sergey Katanandov has also carried on negotiations with the Director General of Severstal-Resurs Joint-Stock Company " Roman Deniskin. This company includes the largest enterprise of the republic Karelsky Okatysh ore-dressing and processing enterprise. The main subject of negotiations was plans of work of the enterprise for the next year. During teh meeting the parties have come to the decision on carrying out of two large meetings in Petrozavodsk and directly in Kostomuksha in the beginning of December. To these meetings the working group which will include members of the Government of Karelia and directors will prepare offers on preservation of rates of development and maintenance of stable work of Kostomuksha ore-dressing and processing enterprise in 2009.

Sergey Katanandov's third important meeting in Moscow on November 19 was negotiations with director of the division of pulp and paper industry of Investlesprom holding Vasily Preminin concerning work of Segezha Pulp and Paper Plant.

The plant, being a part of Investlesprom holding, has come to a complex financial situation of concurrence on time of the beginning of production modernization and sharply reduced demand for paper sacks. To reduce inevitable losses of Segezha Pulp and Paper Plant, Inc., plans 20% reduce of cellulose and paper production. Within the scope of works on reconstruction the oldest paper-making machine and one of the cooking units at the enterprose will be stopped. As a result, almost 600 workers of the enterprise may loose their jobs. Earlier it was supposed, that people will be redistributed on other industrial sites, however, because of the falling demand for production the plant's management has been compelled to start the employee layoff.

Problems of the enterprise today are in the center of attention of the Government of Karelia – at the meeting on November, 11 in Petrozavodsk Head of Karelia has made a decision to create a crisis center to support steady social and economic situation in Segezha region under direction of the Prime minister of the Government of the republic Pavel Chernov.

On results of the meeting with the Head of Karelia Vasily Preminin has left to Segezha to participate in work of the governmental group which a few days agy has started to work in Segezha. The group is comprised of heads of the key ministries of the Government of republic, and its main task is to provide protection of rights of redundant workers of the enterprise, to help them to find new jobs, to offer professional retraining, to create new workplaces by activization of economic processes in Segezha region.

Ivan Stepanov
Press-secretary of the Head of the Republic of Karelia

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Created: November 19, 2008. Last updated: November 20, 2008.
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