DUSHANBE, April 17, 2009, Asia-Plus — The global financial crisis has hit Tajikistan’s economy and its economic entities, including Tajik Aluminum Company (Talco), which is a component of an interconnected world economic system, Sherali Kabirov, chief financial officer (CFO) of Talco, told Asia-Plus following a roundtable meeting that was held in Dushanbe yesterday to discuss the modern aluminum smelting technologies.
Despite the world financial crisis, Talco should develop and innovation projects could promote development of aluminum production in the country, Kabirov said, noting that they are currently developing and implementing a number of projects aimed at improving technological and production-financial processes.
Among these projects is rehabilitation of the heat and power station at the Yovon open joint-stock company (OJSC) Tajikkhimprom (Yovon chemical plant) and establishment of a chemical-metallurgical corporation on the basis of it in cooperation with Russia’s Aluminum-Magnesium Institute and China’s Heavy Engineering Company (CHMC). “Talco and CHMC have been cooperating on construction of two plants for production of aluminum fluoride and cryolite,” said the CFO, “The plants are scheduled to be introduced into operation this autumn.” Besides, Talco now has business partnership with 37 local enterprises.
Expert considers that quite high world prices for primary aluminum in combination of competitiveness of Tajik produce having the world level of quality is not the least of the factors for metallurgy to reach efficiency, Kabirov said. According to him, the selling profitability rate for 1999-2003 fluctuated from 3.8 to 12 percent (average rate – 6 percent), while measures taken by the company resulted in the selling profitability rate increasing to 6.8-27.2 percent in 2004-2008. The average rate has reached 10.4 percent over the past five years.
“The price of one ton of aluminum at the London Metal Exchange fell from 3,291 US dollars in July 2008 to 1,253 US dollars in February 2009, while aluminum production costs are some 2,000 US dollars,” said Kabirov, “Aluminum price falls have hit the aluminum production industry throughout the world, including our company.” The fall of prices of raw materials and products, first of all, hydrocarbons has significantly affected the raw materials companies. At present, production of one ton of aluminum yields a loss of more than 600 dollars to aluminum smelting companies, including Talco, he said.
Kabirov noted that Talco had worked out a strategic plan to mitigate effects of the global financial crisis. “Our company has rejected staff reduction; 12,200 people now work for the company and they receive wages regularly,” the chief financial officer said.
“We realize that implementation of anticrisis measures will not promote acceleration of innovation projects and will not lead to the complete compensation for losses from the crisis impact,” said Kabirov, “However, we realize well that there ought not to refuse strategic actions connected with modernization of production and introduction of technical innovations.”
