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Makstil to reduce production.

Makstil, one of the best performing companies in Macedonia, plans to cut production next year by 30 percent in the steel shop and by 20 percent in the hot strip mill. The positive thing is that no redundancies are planned for now considering that work will be done in reduced shifts.

The company is going to rationalize as much as possible all other costs, which have increased considerably. According to Aleksandar Panov, Makstil's director general, prices of scrap iron went up 10 percent, of electricity 27 percent and of natural gas 39 percent. Transport costs are very high as well. Therefore, Makstil appeals for investments in gasification so that competitiveness can increase and for a second railroad operator.

The chairman of Makstil's management board, Minco Jordanov, says that measures have to be taken to prevent recession.

"The unjustly expensive money prevents economic recovery. The monetary authorities take many measures that should produce results. The measures are said to be effective if they create new jobs and lower the trade deficit. If certain policies fail to yield results, they should change," Jordanov stresses.
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Title Annotation:BUSINESS NEWS
Publication:INFOMAC Daily News Service
Date:Dec 23, 2011
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