Staff Reductions Reportedly Begin at Rusal’s Plant in Armenia
Deteriorating Financial Condition Leads to Staff Cuts
The Armenal plant in Armenia, part of Rusal, has commenced staff reductions, according to local media reports. This move is attributed to the worsening financial state of the enterprise.
Rusal Contemplates Closure of Several Smelters
Rusal is currently evaluating the potential closure of multiple aluminium smelters in Russia. This consideration is driven by a decline in global aluminium prices and the impact of export duties. Additionally, environmental modernization programs at the remaining aluminium smelters might be put on hold.
Armenal's Production Focus and Output
Armenal specializes in producing aluminium foil, achieving an output of around 32,500 tonnes in 2022. However, in the first eight months of 2023, the production volume at Armenal dropped to 17.5 thousand tonnes, marking a 19% decrease compared to the same period in the previous year. Given this trend, total foil production at Armenal for 2023 is projected to not exceed 26 thousand tonnes.
Implications for the Future of Armenal
These developments at Armenal reflect broader challenges within Rusal, particularly in the context of fluctuating global market conditions and operational adjustments. The staff reductions at Armenal signal a significant shift in the plant's operations and a response to the current economic pressures facing the aluminium industry.
