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"TALCO" enlist government support

4 August 2014

Tajik company «TALCO» field of activity is the production of aluminum products for the period from January to June 2014 significantly reduced the release of primary aluminum. According to data provided by the Deputy Minister of Trade and Economic Development R T Nematdzhonom Buriev, this year from January to June the volume of manufacture of primary aluminum amounted to 63 900 tonnes. These figures are lower than the production volumes of same period last year by 45.7%. According to Deputy Minister, Government of the Republic of Tajikistan is concerned about the production company's financial condition and is ready to apply all possible measures to stabilize the operation of the production backbone. In early 2014, it was announced on the reduction of production, and at the moment the reality corresponds to the previously made forecast. Also, for the settlement of the situation it has been developed a plan for the government measures to support the «TALCO», and representatives of the Ministry of Economic Development expressed hope for adoption of this document.

The plan includes a series of measures of technical, organizational and investment and addresses issues of energy saving. It should be remembered that while the efficiency of the developed measures, there are also global market conditions directly affect the «TALCO» — reduced demand for the metal in the international market is reflected in its price. According to information data significantly decrease the overall share of the export of aluminum and cotton by 32% overall. In 2012, aluminum and cotton fiber is a major part of the RT export, lightweight metal and products made of it accounted for about 40.6%, the share of cotton and cotton products accounted for about 18.6%. As to the cost, in 2012, the price of light metal was 2.16 thousand. USD per ton, while in 2013 the price dropped to a mark of 1,830 thou. USD per ton.

Overall, «TALCO» indicators 2013 to primary aluminum production fell by 20.6% compared to last year's period, which amounted to 216 400 tonnes. The exported volume last year reached the level of 197 thousand tons. And if the forecasts of the Ministry of Economic Development and Trade of Tajikistan will justify itself, in 2014, primary aluminum production figures will drop even more — to the level of 150 thousand tons.

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