Support measures for Litmash plant discussed at economics ministry

03/23/16 11:33

Support measures for Litmash plant discussed at economics ministry

This issue has been negotiated for over half a year

Tiraspol, 23 March. /Novosti Pridnestrovya/. Possible measures of state support for JSC Litmash were discussed at the Ministry of Economic Development. According to the ministry's press office, this issue has been negotiated since mid-2015.

In 2014, the plant already received government support in the form of reduced tariffs for fuel and utilities at an amount of 14 million roubles. The economics ministry states that the plant's management has not fulfilled its commitment to maintain the personnel and pay wages in proper time.

In the period of 2008−2013 the plant modernised its equipment, restored and widened its product range and explored new markets. JSC Litmash worked out two innovative projects, thanks to which the plant gained a licence for the production of railway casting. Since 2014 the plant has been suffering losses due to the devaluation of the national currencies in neighbouring states. Throughout 2015, the plant's management was searching for customers to extend market outlets.

According to the ministry, the Litmash management has managed to find new orders and sign contracts. However, the plant cannot conduct its activities because of large debt to creditors.

The ministry promises to study all proposals by the plant's management for granting state support to the enterprise. «We do want the plant to continue working and the personnel to keep their jobs," the minister of economic development, Dmitry Boltrushko, voiced the ministry's stance.


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