Tiraspol, 9 March. /Novosti Pridnestrovya/. The minister of economic development believes that the management of Moldovan Still Works is efficient in under such unfavourable circumstances. During an interview with journalists following a Supreme Council session, Dmitry Boltrushko commented on lawmakers' advice to the government to make an objective evaluation of the performance of the plant's senior executives.
«First, no-purpose and inefficient spending on many item has been cut. Besides, considering a fall in prices for finished products and raw materials, the enterprise did its best to continue deliveries in 2015. The plant produced less metal-roll but more still billets," noted the minister.
«We have analysed the government's support for the enterprise and the amount of taxes it paid after nationalisation. It should be noted that the plant paid 63% more taxes per 1,000 roubles of profits than in 2014. But the government decreased its assistance per a tonne of products," noted Boltrushko.
The management's decisions resulted in a 40% reduction in production price, and the plant's losses decreased from 2.6 to 1.47 million roubles per month as compared to 2014.
At the same time, despite MMZ's performance achievements and anti-crisis strategy, its sale proceeds almost halved last year to $105.7 million as compared to 2014. It was due to a two-fold landslide of rolled product prices (from $545 to 270 per tonne). However, there is a global decline in steel production, markets are oversaturated and, according to experts' forecasts, this trend will continue in 2016.
There is another problem. The main component in a production price (70%) is metal scrap (raw material). The Ministry of Economic Development emphasised a critical difference between a price for finished products and a price for metal scrap. If earlier this difference was $265, in December it was reduced to $92 (the lowest figure since 2002). This is the critical point that does not cover the plant's costs. As a result, MMZ is operating at a loss.
«The current conditions are such that the plant is not quite profitable in terms of its income with all that it entails. Today the plant is receiving the government's assistance because, among other reasons, it employs 2,500 workers. Many auxiliary enterprises are linked with MMZ, and the government is doing its best for the enterprise to continue working», notes Dmitry Boltrushko. «The main function of the plant is ensuring social stability in Rybnitsa," he added.
According to the minister, today the enterprise is in need of specific support measures. At the same time, the recent scandals that are being deliberately aroused around the plant and brought up for public discussion in the Supreme Council do not favour in any way assistance to the plant, the minister is sure.
«Bringing up issues based on some scandals for the discussion of the Supreme Council is not quite correct The context in which this situation is presented by commercial media outlets do not help solve the plant's problems but rather affect its business reputation," said Dmitry Boltrushko.
The minister also underscored that the commercial media often makes the point that it is the government's policy that forced the previous owner to quit the plant.
«It should be noted that MPs know the situation in every detail. The nationalisation of the plant was discussed at a Supreme Council session. The verbatim account of the session makes it clear why the former investor left MMZ. If we hadn't nationalised the plant, it could have been shut down and 2,500 people would have lost job," explained the minister.
Dmitry Boltrushko is sure that in cooperation between the Supreme Council and the government «it is necessary to drop a 'question-response' format in favour of constructive proposals».
«We are open and ready to analyse all proposals and do our best by joint efforts for MMZ to continue its existence in 2016," he underscored.
At the same time, the minister argues that deputies' inquiries are not backed up by concrete proposals for the improvement of the situation at MMZ.
«For now, we can hear only hearsay and scandals, which are generally not systemic. I do not know how MPs can help besides criticising. At the moment deputies are arousing unnecessary excitement around this plant, which may damage its business reputation in such a difficult period," concluded the minister.
The minister expresses fear that «there is a certain trend to use the Supreme Council as a platform for disseminating unverified information».
«This information may be used competitors of our enterprises," said Boltrushko,
