News

31 January 2019, 16:50

Business

LRP processing companies sales grow 3.6 times in 2018

LUGANSK, January 31 (Lugansk Media Centre) - Lugansk People’s Republic processing companies increased sales by 3.6 times in 2018 year-on-year, LPR Industry and Trade Minister Dmitriy Bozhic said at a Cabinet meeting chaired by Prime Minister Sergey Kozlov.

The meeting reviewed processing companies’ performance last year and their targets for 2019.

“In general, the processing sector’s sales jumped by 3.6 times compared with 2017,” Bozhic said.

Metallurgy products sales increased by 17.5 times thanks to the relaunching of full production cycle at the Alchevsk Metallurgical Works’ subsidiary No 12 and other sub-sector units.

The minister noted an increase in output at Lugamash and Stakhanov Rail Car Manufacturing Plant and the launching of subsidiary No 13 of the Stakhanov Ferroalloy Plant which manufactured 8.9 tons of products from June through December 2018.

The LPR Industry and Trade Ministry promoted the amendments to enable the relaunching of the Unis company specialising in high-level processing and finishing of non-ferrous metal products and heating radiators, Bozhic said.

He attributed the progress to the beginning of the implementation of Programme 2023 initiated by LPR Head Leonid Pasechnik.

The minister also unveiled the plans for developing the Republic’s processing sector this year. They envision higher production targets at the Alchevsk Metallurgical Works, the launching of the second electrically-heated furnace at the Stakhanov Ferroalloy Plant to boost ferrosilicon production, and implementation of the first stage of the project to run maintenance on railway cars at Lugamash and freight cars at the Stakhanov Rail Car Manufacturing Plant for the Lugansk Railways and Donetsk Railways state-owned enterprises.

Tolling schemes are considered for light industry companies and steel pipe manufacturers, Bozhic added.

“We will consider the relaunching of the processing companies that have not operated in the past few years due to the loss of owner, lack of opportunities to find destinations or other reasons. Overall, about ten such enterprises are expected to be revived,” he said.

“Also, we’re coordinating a concept of industrial companies cooperation for 2019-2023 with local administrations across the Republic,” the minister added.

Kozlov said that “special attention should be paid to relaunching companies which have the potential to go back online but are experiencing problems with finding new markets and raw materials suppliers.

Earlier, the Industry and Trade Ministry said that the processing companies boosted sales by 3.4 times in the first ten months of 2018 year-on-year.

“On May 12, 2018, Pasechnik presented the programme of the LPR socio-economic development till 2023 “Our Choice” to the legislative and executive branches of power. He said that the Republic would focus on developing banking and industry by implementing a number of dedicated projects.

LuganskMediaCentre — 31 January — Lugansk