Joint Stock Company “Liepajas Metalurgs” informs and clarifies the material published in the media in the following way:

Last week the Board of JSC “Liepajas Metalurgs” decided to terminate payments of the obligatory electricity surcharge, which is acting as support mechanism for electricity producers. It is already mentioned previously that in 2013 it is planned to increase the attributing cost of the obligatory electricity surcharge for 1 KWh, according with the last forecasts the increase will be up to 53,6%. During the year 2008 – 2012 JSC “Liepajas Metalurgs” made the payments for the obligatory electricity surcharge in amount of LVL 10,9 million. The payment for the obligatory electricity surcharge in the year 2013 will reach LVL 9,2 million, if the planned increase for the obligatory electricity surcharge in the year 2013 will come into force. The increasing payment for the obligatory electricity surcharge is dramatically affecting the financial status of the company that is why it is decided not to pay the obligatory electricity surcharge portion but to direct this amount for settling obligations.

During the meeting of Saeima Economic, Agricultural, Environmental and Regional Policy Committee in January 22, 2013, the Minister of Economics Mr. Daniels Pavļuts introduces the deputies with Report of the Ministry of Ecomonics for the electricity price increase risk. It is to be added that in other European countries such high obligatory electricity surcharge with the electric power prices is not applied to the steel producers. This dramatically affects competitiveness of JSC “Liepajas Metalurgs”.

Commenting upon the information published in the media on the non-extension of credit lines Joint Stock Company “Liepajas Metalurgs” is stating that the existing credit lines in the amounts as defined previously have been extended for the year 2013.

Līga Šenfelde
Assistant of chief Economist
63455926, shenfelde@metalurgs.lv