The “Kurum” company has reacted to the news about the dismissal of 500 of its employees, after the name of this company came out as being involved in the export of waste and the investigations of the Albanian authorities on this issue.

Through an announcement, “Kurum” has said that it has not made any collective dismissal of its employees.

The announcement also states that it is true that the steel and rolling mills in the former Elbasan Metallurgical Plant have stopped production since August 1 and August 15, respectively.

But according to them, “this fact has nothing to do with the announcements in the media about the export of amounts claimed as hazardous waste by an Albanian company, nor with the media attacks on our company, as well as the denigrating campaign made in the media so far “.

The company emphasizes that the decision to stop production came after the economic difficulties that Kurum was going through.

Kurum announcement:

The Kurum International company, regarding the news about the closing of the factories and the dismissal of its workers, informs you as follows:

The company Kurum International, until 26.08.2024, has not made any collective dismissal of its employees. It is true that the steel production and coating factories in the former Elbasan metallurgical plant have stopped production since August 1 and August 15, respectively, but this fact has nothing to do with the announcements in the media about the export of quantities claimed as waste dangerous from an Albanian company, nor with the media attacks on our society, as well as the denigrating campaign carried out in the media so far.

The company, anticipating a worsening of the economic situation during the following months, has decided at the beginning of August to start negotiations with the union and legal procedure for a certain number of employees, offering them the alternative of leaving work after 3 months against repayment of all obligations and payment of seniority compensation according to the law, with always the option of returning at the earliest opportunity to resume work in the factory.

This precautionary measure does not affect the rights of the workers, who are being paid even though they do not show up for work, social security and other legal obligations have been paid and will be paid according to the laws in force. The company is negotiating with the workers’ union to reach the best possible agreement for all parties.

All other allusions, in our opinion, do not stand and are untrue.

Meanwhile, the company is making the necessary repairs with the workers who are currently and remain at work, to complete the investments started for the further modernization of the production lines, to be as competitive and efficient as possible in the regional market, and hopes to resume the process of production as soon as possible.

Our company is focused on its mission to bring added value to the Albanian economy for more than 25 years, producing and trading regardless of the countless difficulties of the Albanian industry and market, Albanian steel, the Kurum brand, for what thanks to the sacrifices of more than 700 workers, we have managed to be a leader in the country and in the region, being the largest industrial producer in the country, as well as the largest exporter in the country for years.

Kurum steel meets all European and international standards, moreover, it meets the conditions to be considered green steel, it is produced by metal recycling, with green energy produced by our HPP, and in an improved technological process and continuously modernized during these years, to export the Albanian brand in the region and in the world.

However, as a result of international factors, the global economic situation in general, and the situation of the heavy industry and the steel industry in particular, in the last two years, after the beginning of the energy crisis in Europe, our factories have suffered from this situation, interrupting from time to time in the last two years production, and not having continuity during the year.

During the second half of 2023 and especially in the first 6 months of 2024, the heavy and metal industry in general, and the production of steel for construction in particular, will suffer from global economic deterioration factors, among which the inhibition of demand for investments and the slowdown of economic growth as a result of high financial interests, the increase in costs from the long post-pandemic inflationary period, and difficulties in finding raw materials, high electricity prices, etc.

Global steel prices, after the significant increase during 2021-2022 (the Russia-Ukraine war and the energy crisis), have continued to decline gradually by almost 29% within the year 2023 until the first 6 months of 2024. In the 3 months of lastly, the CHINA factor, has once again influenced the immediate and significant drop in prices by 10-15% further, reaching below the price level of the time before the pandemic, specifically below 460-470 usd/ton.

We reiterate once again that the Company is making the necessary repairs to complete the investments started for the further modernization of the production lines, to be as competitive and efficient as possible, and we hope to resume the production process as soon as possible.