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TALCO: State financial support is needed

The global financial crisis does not select and does not spare: as well as other global producers of aluminum products, Tajik Aluminum Company (TALCO) is forced to operate on the most brutal anti-crisis routine. A possible rise in the cost of aluminum production costs a lot of factors can affect, among which the reduction in raw material prices on the London Stock Exchange, rising prices, the change in a big way railway tariffs and other costs. Ultimately, the price per ton of product can be increased from 400 to 500 USD.

Manual TALCO notes that the problems of the financial plan of the company are the result of high energy costs, in connection with geographically disadvantageous position with respect to the main sources of raw materials. Transporting raw materials every year more and more expensive, the same applies to the finished products. As noted in the TALCO, only one share of transport costs in the production of the metal is more than 30 percent of the total cost of the finished product.

Taking into account all the factors governing the anti-crisis measures have been developed by the company's staff, designed to reduce production costs. Analysts, taking into account all existing risk factors, concluded that with further increase in output is inevitable increase in financial expenses, which may lead to adverse consequences for the enterprise. Thus, the required percentage reduction in the volume of production was 20%. Already at the beginning of December 2013 the company has reduced production capacity, release of raw aluminum totaled 218,2 thousand tons. This figure is 20.7 percent less than last year's data. Primary aluminum production was slightly more than 216 tons, compared to 2012 is only 79.3%. For almost a full 2013 imports amounted to 259.3 million USD, while exports -. 351.1 million USD.

The company has no doubt that the financial crisis will increase and exacerbated regardless of the internal state of affairs in Tajikistan. Nevertheless, the leadership of the Tajik aluminum company expects to take all possible measures in order to maintain production potential and to restore the power by the strict implementation of anti-crisis actions. Also TALCO leaders do not doubt that at this moment, more than ever in need of state aid to ailing recovery position.

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