Mechel Targoviste, a Romanian-based subsidiary of the Russian mining and steel producing group Mechel, has halted its production operations for a five-day period citing sluggish demand. The mill is scheduled to be reopened on November 10, 2008.
For the duration of the stoppage, more than 3,000 workers have been sent on leave and are to be paid 75 percent of their wages. The measure in question will not lead to job cuts.
Mechel owns three steel mills in Romania, Mechel Targoviste, Ductil Steel and Mechel Campia Turzii, and is a leader in the Romanian rebar market which has been hit very hard by the current crisis. In 2007, 93 percent of Mechel Targoviste's production, amounting to 470,000 mt, was delivered to the domestic market.