Zaporozhye Titanium and Magnesium Works could suspend operation over the increase of the electricity tariffs.
Since July 1, with the new electricity market operating, the tariff for ZTMK has increased by 25%.
Thus, expenses on electricity for the company will grow by 15 million UAH per month.
The share of electricity in the company product cost exceeds 40%. Thus it is a key factor affecting the final price.
With such a tariff the company operation becomes economically inappropriate.
ZTMK says if the government does not decrease the electricity tariff, it will have to suspend operation, with 3.5 employees and dozens of subcontracting organizations remaining without work, local budget without 140 million UAH of annual taxes and the state without $60 million of export revenue. (Ukrainian metal)