The Kazakh Ministry of Industry and Trade, ArcelorMittal Temirtau, the administration of the Karaganda region and the relevant trade unions plan to sign next week a quadruple memorandum for anti-recessionary measures and prevention of job cuts in the domestic steel market.
In the context of the current financial crisis, ArcelorMittal Temirtau has drawn up three operational plans, including a pessimistic, a basic-level and an optimistic plan. According to the pessimistic plan, the company's total deliveries could decrease to 150,000 mt of rolled products per month, while job cuts could reach a total of 3,300.
ArcelorMittal Temirtau has requested the Kazakh government to cut social security tax rates to 10-12 percent for the period of crisis, to ensure compensation of VAT to the amount of KZT 3.6 billion (approx. $30 million), to declare a moratorium on the increase of railway tariffs and to reduce transport tariffs across the country. Moreover, the company has also asked the government to ensure monthly state-sector orders worth KZT 2.5 billion (approx. $20.8 million).
On the other hand, the Kazakh government and the trade unions have asked the company to implement a six-month basic level program, including the halting of the policy of obligatory leave for workers and the prevention of job cuts.