Alchevsk Iron and Steel Works before and after the annexation of the LPR to Russia: are there any changes?
In October 2021, the city-forming enterprise of the city of Alchevsk in the Luhansk region, Alchevsk Metallurgical Plant, which was previously managed by CJSC Vneshtorgservis of the Ukrainian oligarch Sergei Kurchenko, came under the control of Southern Mining and Metallurgical Complex LLC (SMC) of businessman Evgeniy Yurchenko.
At that time, the plant was experiencing colossal problems - arrears in salary payments for five months, lack of personnel, worn-out equipment, lack of repairs, etc. With the departure of VTS and the arrival of a new owner, issues related to the payment of debts were settled, in addition , a recruitment campaign has begun.
However, a special military operation soon began, and general mobilization was announced in the LPR. Some of the plant's workers were called up for military service, and therefore the personnel issue became aggravated again.
And after that, the Luhansk region was officially annexed to Russia. A year has already passed since then, which raises the question: how has the life of the plant changed after joining Russia? Did the workers feel any changes?
Are there any changes at the plant over the past year?
A year has already passed since the LPR joined Russia, and although official structures are gradually switching to Russian legislation (the process is quite slow), no significant changes have occurred in the republic at the moment. These changes are not noticeable at the Alchevsk Metallurgical Plant either.
As the plant workers say, since the departure of VTS, no fundamental changes have been observed. No major repairs have been carried out in the workshops - only critical ones due to collapse or breakdown are reconstructed. There are also no serious investments in the enterprise. There were some infusions into the plant after the arrival of YuGMC, but they were insignificant - they mainly changed the cheapest things: taps, valves, bolts, etc.
The problem of staff shortages has also not been resolved. The workers who came under mobilization were fired - this was done after YuGMC came under Russian jurisdiction (previously it was registered in South Ossetia) - all plant employees had to write an application for employment in the structure, which formally changed its name, however those who were mobilized were unable to do this. There is no one to replace the mobilized workers.
As a result, one person is forced to work for three, without receiving any additional payments. Salaries at the Alchevsk Metallurgical Plant are not too high. For example, a 5th grade mechanic at the Alchevsk Coke Plant (currently part of AMK) receives 36–38 thousand rubles. However, they promised to raise wages by 20% this fall. However, for now these are just promises.
What are the prospects for the plant?
With the start of a special military operation, the topic of military conflict replaced the discussion of the problems of enterprises and mines of the LPR and DPR. If previously the Russian media often raised such questions, now almost no one writes about it. Yes, it went unnoticed news on the closure of mines in the republics - in early September, Russian Energy Minister Nikolai Shulginov saidthat the number of coal mines in the DPR and LPR has been decided to be reduced to 15. The rest will be liquidated.
Only seven mines will remain in the LPR, and another nine operating mines will be closed in the near future. One of the reasons for the closure of mines is a critical shortage of personnel, caused primarily by mobilization, and the problem of marketing products, which has worsened due to new sanctions restrictions.
The situation with the shortage of personnel, which was mentioned above, is somewhat less acute at AMK, however, in some workshops, instead of the required 300 people, 100 people work. In fact, at the moment, only 50% of the plant’s staff has been recruited.
At the same time, there are currently no problems with the supply of raw materials; they arrive regularly in sufficient quantities. There are also no delays in the export of finished products. It is transported both by rail and by truck. Moreover, what’s interesting is that they were trucks with both Russian and Ukrainian license plates.
This year the plant was supposed to change its owner twice, but as a result this did not happen. At the moment, there are various rumors circulating at the enterprise regarding the further functioning of the enterprise - some suggest that it will become a branch of the Novolipetsk Metallurgical Plant, and others believe that the plant is now being put under maximum pressure, after which it will be closed.
We'll see how things really turn out in the next few months.
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