The accounts payable of ArcelorMittal Temirtau (AMT) to Kazakh entrepreneurs amounts to more than $500 million. The new owner of the plant, Qazaqstan Steel Group Corporation, will repay the debt, Kapital.kz reports.
Last December, Kazakhstan bought shares of two plants from the international company ArcelorMittal – ArcelorMittal Temirtau JSC and ArcelorMittal Tubular Products Aktau. To date, all shares belong to the non-state company Qazaqstan Steel Group Corporation.
AMT has been accumulating debts to contractors of the Republic of Kazakhstan for years. Materials and equipment were delivered to the plant on time, but payment was delayed. Using the status of one of the largest metallurgical enterprises in the country, AMT in fact received a loan with a zero interest rate at the expense of contractors and suppliers. Some creditors faced a real threat of bankruptcy. They fear that they will no longer be able to return the money. The total amount of debt exceeds $500 million.
According to the Prime Minister of the Republic of Kazakhstan Alikhan Smailov, issues related to the rehabilitation of the metallurgical plant, including those related to debt payments, are under special control of the authorities. The AMT plant, renamed Qarmet after the change of owner, has already begun to gradually pay debts to contractors.
ArcelorMittal Temirtau not only left the Republic of Kazakhstan with overdue loans, but also remained in debt to the employees of the enterprise, so the new owner, as Mr. Smailov assures, makes sure that employees receive their salaries on time.