Director General of the ArcelorMittal Temirtau JSC Vijay Mahadevan said his company is discussing with the Government of Kazakhstan the possibility for increasing the demand in the domestic market by limiting imports from other countries.
However, the head of the company admitted that due to Kazakhstan's membership in the Customs Union, it would be challenging for the Government to impose steel import restrictions.
"Doing so, the Government could help us," said Mahadevan at the press conference on July 29 commenting on recently adopted decision of the company to cut wages of workers by 25% instead of firing 25% of workers.
He added that the local market now covers about 3 million tons, while the annual domestic demand growth is 3-7%.
"At the moment, we produce 3.5 million tons of steel a year. We plan in the near future to produce 4 million tons of steel a year with further production growth up to 6 million tons," added the CEO.
ArcelorMittal Temirtau announced on Tuesday that it will reduce wages of all workers of the company by 25% starting from August 1. Excess of steel imports, especially from Russia, was blamed for financial challenges in the company that in turn allegedly lead to wage cuts.
ArcelorMittal Temirtau, an ArcelorMittal subsidiary, is the major enterprise in Kazakhstan's steel and mining sector. The ArcelorMittal works in automotive, construction, household appliances and packaging spheres. ArcelorMittal is present in more than 60 countries and has an industrial footprint in over 20 countries.