VOLGOGRADSKY Steel Plant `` RED OCTOBER IN THE COMING YEARS WILL RUB 5.6 billion for modernization
Society `steel mill #39;Red October#39; (VMZKO) will be included in the state armaments program, under which the company until 2016, will receive 5.6 billion rubles for the modernization of fixed assets, told the executive director VMZKO Dmitri Gerasimenko.
`Just a month ago, we received a notice from the Industry and Trade of the Russian Federation, that` Red October #39;will include a federal program of arms until 2020, and from next year the volume of investments in#39; Red October #39;will be for three years, 5.6 billion rubles.
The government gives money to sustaining capital #39;- said Gerasimenko. According to him, first of all funds will be used for the restoration of forging production at the plant `` barricades. This area, which includes forging and casting and mechanical engineering, was acquired by the VMP in 2008. `Today playground ceased generating losses, there is a positive result, but still a small profit #39;- said Gerasimenko.
There, he said, the old equipment - presses 1902-1916 period. In addition, a major upgrade to the state program will affect the plate rolling mill #39;Red October#39;.
As part of the bankruptcy proceedings of JSC `steel mill #39;Red October#39; the decision of the arbitration court of the new enterprise - JSC` steel mill #39;Red October#39;, which will be transferred to the entire staff. As said Gerasimenko, receivership on Company `steel mill #39;Red October#39; will be introduced in September this year. `This is the final definitive way to prepare for the sale of property and debts, but not the plant and JSC` `Red October and the end of the procedure (bankruptcy) that people perceive with relief #39;- said the CEO.
It was reported earlier that the global financial and economic crisis in 2008 had a negative impact on the plant. The company suffered billions in losses, have accumulated large debts, and as a result - filed for bankruptcy (in November 2009 introduced observation, and from January 2011 - external control). The new management team of the plant, attracted by CC Technologies `` and `NPK Uralvagonzavod #39;with October 2011, the event to enhance the competitiveness of the enterprise, enabling VMZKO an economic advantage and overcome the break-even.
