Russia's Mechel schedules production halts in Romanian steel plants

The decision was made in order to cut costs and tune production to the unfavorable conditions on the markets for raw materials and finished products, he company said in a statement on Friday. In addition, the Romanian plants have fulfilled their yearly production targets, Mechel added.

The smelting facilities at Mechel Targoviste and Ductil Steel Otelu Rosu were temporarily halted on November 21 and 22, respectively, while rolling production will be suspended on November 27 at Mechel Targoviste and on December 15 Ductil Steel Buzau, Laminorul Braila and Mechel Campia Turzii.

The production halt will not affect sales as the required volumes will be provided from stockpiles.

The workers involved will be paid their full salary, while the remaining personnel will be either paid for idle time or sent on leave, the statement said.

Mechel decided on September 21 to sell part of its assets, including the Romanian steel makers; and said then that production will not stop to ensure the greatest possible value of the assets.