The Ukrainian flat steel producer Ilyich Iron and Steel Works of Mariupol (Ilyich) could be forced to stop its operations within two or three months if the state does not pay value added tax (VAT) refunds which currently exceeds UAH 800 million (about $99 million), the mill's general director Vladimir Boiko has said at a press conference.
"Currently the main thing for the plant is to find a mutual understanding with the state and to obtain a monthly payment of VAT. We are not guilty if the state is not fulfilling its promises. We will try to survive for the next two to three months, and we will continue to seek the VAT refund, up to the shutting down of the plant. And we will be supported by the whole world, because we have worked honestly all these years," Mr. Boiko said.
Mr. Boiko also added that Ilyich currently has huge losses and is "forced to daily calculate the production costs per each metric ton of iron and steel." However, despite the difficulties, none of the plant's shops have stopped their production operations and the plant is fully secured with orders for February and March 2010.
In 2009, Ilyich saw a net loss of UAH 255.9 million (about $31.7 million).