Statement of the acting General Director of Corporation “VSMPO-AVISMA” Maxim Kuzyuk about a possible stop of production does not coincide with the views of major shareholders of the company. They called his words a personal opinion and waiting for the recovery of the global aviation industry, for which “VSMPO-AVISMA” is the main supplier of titanium, are counting on revenue of $1 billion for the year, which is enough to maintain stable operation of the enterprise. The company’s shares on news increased by 0.21%.Shareholders of the world’s largest producer of titanium Corporation “VSMPO-AVISMA” has denied the statement of the acting General Director of the company Maxim Kuzyuk about a possible stop of activity of the company, which he did in the course of communication with the team on June 17. “We considered August for a stop today decided that in August we won’t stop considering September, but the decision will be made depending on how many orders we are really in the system will make,— he said. Because to work for a small load — it’s even worse than a full stop”. In a joint statement the main shareholder “VSMPO-AVISMA” Michael silk “Rostec” review of Mr. Kuzyuk named his personal opinion. In addition, according to the statement, the comment has nothing to do with reality.The shareholders claim not to have considered the possibility of layoffs: “companies are working and will continue work in a usual mode”. Of the Corporation by a decline in air travel and the overall situation of the pandemic, they write, really had to significantly adapt the activity of enterprises due to the adjustment of a number of programs. So, in April, was reduced planned production volumes of titanium products in 2020, significantly reduced non-production costs and temporarily suspended the investment program, said in a statement.In the opinion of the shareholders in the global aviation industry has signs of recovery, increased economic activity from major customers in Europe and the United States. The statement also said the resumption of the partners of the suspended contracts that allow corporations expect to increase the total volume of orders for this year. At the moment, the planned volume is 26.5 thousand tons. “Thus, even under the most conservative scenarios of situation development in the global titanium market, the company will provide revenues in excess of $1 billion This is enough for stable operations of the enterprises in 2020″,— said in a statement.”VSMPO-AVISMA” provides up to 35% of the titanium used by Boeing, the 65% demand of Airbus and 100 percent of Embraer. The crisis in the aviation industry, associated with a coronavirus pandemic, has hit the demand for new aircraft and, accordingly, the company is the primary supplier of titanium dLa global aerospace industry. As a result, the Corporation was forced to reduce the production plan. The crisis also affected financial performance. In the first quarter, the Corporation showed 8.1 bn RUB. in the net loss grew to 7 billion rubles. profit a year earlier.Maxim Kuzyuk headed the Corporation after retirement in may, the longtime head of the company Mikhail Voevodin, who yesterday extended his contract for three years (see “Kommersant” on 6 may). During this time, Mr. Kuzyuk had to say about the possibility of reductions in the Corporation. At the same time, he noted that the small town of Verkhnyaya Salda, where the enterprise will not survive, if there was a massive reduction in production. But he wants to “change the concept of our perception of the plant as a guaranteed employer”. After the words of Mr. Kuzyuk about stopping the production of the company’s shares fell by 5%. But after the speech of the shareholders of the paper, some have grown on 0,21%.Eugene Zainullin
