Reasons behind closure of Makeevka

Reasons behind closure of Makeevka

According to reports from the industry, the causes for Makeevka's stoppage are the increased amount of debts which the managing company Danko faced. Previously Danko supplied all raw materials, paid salaries of workers and used mill as tolling scheme. It appears that under this scheme, there was no margin allowed for the mill and consequently the amount of debts increased for the last few years. It is understood that the mill is under special control of the Ukrainian goverment. It is believed that the government asked for funds from Danko to settle those debts but Danko, which is part of Leman group, has refused this option and the mill had to stop production.