DUSHANBE, APRIL 18 2016, (The Conway Bulletin) — Central Asia’s largest aluminium smelter, TALCO, laid off 607 workers to cut costs, an indication of how a heavy fall in global commodity prices has hit industry in Tajikistan.
TALCO is Tajikistan’s largest factory, its biggest taxpayer and its biggest consumer of electricity. It dominates the Tajik economy so for it to lay off 607 workers cuts deep into the national conscience. TALCO now employs 8,200 workers.
According to a report by the Reuters news agency, foreign consultants had advised the company to cut around 2,000 workers from the workforce to maintain a healthy balance sheet.
The company, however, chose what it described as a “a gentle strategy to optimise costs”.
Aluminium prices, now at $1,530/tonne, are around 25% lower than in August 2014.
Besides having to cope with lower revenues, TALCO is also under the spotlight for unpaid electricity bills to the national distributor Barqi Tojik and is the focus of a parliamentary investigation in Norway over alleged corrupt practices.
The Norwegian investigation involves Norsk Hydro, a government- owned smelter that has done business with TALCO.
Norway’s MPs want to know who the beneficial owner of Talco Management, registered in the British Virgin Islands, is. Talco management controls TALCO in Tajikistan.
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(News report from Issue No. 277, published on April 22 2016)