On Tuesday, May 19, steel giant ArcelorMittal's Kazakhstan-based subsidiary ArcelorMittal Temirtau said that it was experiencing serious financial problems which may cause partial or full suspension of the plant's operations.
ArcelorMittal Temirtau said in its statement that it could be forced to halt production and lay off workers in Kazakhstan unless "urgent measures" were taken. The company stated that the unit incurred a US$100 million loss in the first quarter of 2009 due to lower demand.
ArcelorMittal Temirtau added, "There is a threat of layoffs but the company plans to avoid that by introducing limits on bonuses."
ArcelorMittal's Kazakh unit employs around 46,000 people.