Eurocement Group holding has halted work at one of its plans in the Ryazan Region, Aton Capital said. According to Kommersant, the company was forced to take the measure owing to conflict with workers demanding pay rises.
Mikhailovcement is responsible for roughly 5% of group production, and its capacity is more than 3000tpd of cement. Production at the factory apparently stopped in mid-June. Aton estimates that the lost month cost the company nearly $8.5m.
Aton believes government officials are likely to monitor events at the country’s largest cement holding closely, and therefore expects the company will strive to avoid an extended conflict.