Russias Leading Ferroalloy Producer Adopts Four-Day Workweek Amidst Market Turbulence

Russia’s leading producer of ferroalloys will implement a four-day workweek for its administrative staff starting September 1, as reported by the business daily Kommersant. This change comes as the metallurgical sector in the country faces increasing financial pressures.

The Chelyabinsk Electrometallurgical Plant (ChEMK), which supplies 80% of Russia’s ferroalloy utilized in steel manufacturing, attributed this decision to significant changes in exchange rates, unfavorable market conditions for ferroalloys, and a marked decline in demand from industrial customers.

The company has compelled to initiate an “anti-crisis program” due to these challenges.

«All administrative personnel within structural divisions will shift to a reduced work schedule from September 1, effective until the end of 2025. There are no layoffs planned,» stated the plant in a press announcement.

This updated work schedule will impact 1,200 employees.

Officials from the company indicated that a return to the regular schedule could occur if market conditions and currency rates stabilize.

ChEMK was nationalized in 2024 after a court ruling in the Sverdlovsk region mandated the transfer of shares in ChEMK, Serov Ferroalloy Plant, and Kuznetsk Ferroalloys — firms that were part of the ChEMK Group — to the Russian government.

The Prosecutor General’s Office accused the previous owners, the Antipov family, of the unlawful privatization of assets and exporting goods to so-called “unfriendly countries,” actions considered detrimental to national interests.

The company was formerly under the control of JSC Etalon, a real estate enterprise linked to billionaire Yuri Antipov, who was subsequently arrested for fraud following the nationalization.

The management of the assets was handed over to the Federal Property Management Agency (Rosimushchestvo).

As per data from SPARK-Interfax, ChEMK reported revenues of 81.5 billion rubles ($1 billion) in 2023 but concluded the year with a net loss of 519.4 million rubles ($7 million).

Russia’s metallurgical industry has been significantly impacted by escalating international sanctions, the loss of export markets, and a key interest rate of 20% set by the Central Bank.

Research from the consulting firm Yakov and Partners reveals that Russia’s steel exports fell by 11 million tons from 2021 to 2023. Domestic demand declined by 6% in 2024, and the Russian Steel Association warns of a potential further decline of 5% in 2025.

Steel production decreased by 8.6% in 2024, marking the largest drop among the world’s leading steel-producing countries, and fell an additional 5.2% from January to May 2025, according to World Steel Association statistics.

Alexander Shevelev, CEO of Russian steel giant Severstal, projected that domestic steel demand could shrink to 39 million tons by the end of this year, down from the current range of 43-45 million tons.

In June, Industry and Trade Minister Anton Alikhanov noted that the government is considering tax relief initiatives for the sector. One suggestion includes raising the excise tax threshold on liquid steel — currently set at 30,000 rubles ($380) per ton — starting in 2026.

Metallurgy continues to be a vital sector of Russia’s economy, employing over 600,000 individuals and contributing 10% of the country’s export earnings.