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EPM-Chelyabinsk Electrode Plant shuts down anode production

Chelyabinsk September 27, 2019  Starting October 01, 2019, EPM-Chelyabinsk Electrode Plant  (hereinafter referred to as "EPM-ChEP", a member of EPM Group) shuts down its anode* production.

The decision to suspend the EPM-ChEP operations is linked to the extremely unfavorable conditions of the world market of carbon and graphite products, in particular, anode blocks, which are the main products of the plant. In less than a year, the cost of EPM-ChEP anodes decreased by more than 30%, making the company unprofitable and rendering further production unviable. This situation was the result of the procurement policies of the consumers, who primarily use the prices posted by Chinese manufacturers, who actively practice dumping, as a reference. 

The process of shutting down the operations started in late September and will last until the end of 2019. Notifications have been sent to contractors and clients of EPM-ChEP in advance, the terms of contracts execution have been adjusted in regards to the production suspension plan.

Almost a quarter of the plant's employees will be transferred to the Chelyabinsk enterprise of the EPM Group — Doncarb Graphite (hereinafter referred to as "DCG"). In addition, all the redundant employees will be offered jobs at the plants in other operation areas of EPM Group. 

Energy, transport, IT-infrastructure, production laboratory, fire and medical services of EPM-ChEP were transferred to the DCG's management.

Staff reduction will strictly follow all the conditions set forth by the labour legislation of the Russian Federation and the position of the enterprise's trade union organization will be taken into account. In addition, employees will have the opportunity to undergo vocational training or training in another specialty at the expense of EPM-ChEP JSC, as well as to receive compensation for the costs of the currently attended secondary education, primary and secondary vocational education, first higher education in 2019-2020.

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* Anodes are used for the production of aluminum using high-tech modern reduction pots and serve to supply current to the electrolyte. The main consumers of anodes manufactured by EPM-ChEP JSC are the enterprises of UC RUSAL.

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