Chep Enterprise Agreement

The reduction of the workforce will be done strictly under all the conditions of the labour legislation of the Russian Federation and the position of the trade union organization of the enterprise will be taken into account. In addition, staff members have the opportunity to undergo vocational training or training in another discipline at the expense of the EPM-ChEP JSC and to obtain remuneration for the costs of secondary, primary and secondary education currently attended, the first higher education in 2019-2020. Almost a quarter of the plant`s employees are transferred to the Tcheliabinsker company of the EPM Group, Doncarb Graphite (hereinafter referred to as “DCG”). In addition, all laid-off employees will be offered jobs in factories in other areas of the EPM Group. * Anodes are used to make aluminum with modern high-tech reduction pots and are used to power the electrolyte. The main customers of the anodes produced by EPM-ChEP JSC are the UC RUSAL companies. The process of closing the operation began at the end of September and will continue until the end of 2019. Notifications were sent in advance to EPM-ChEP`s contractors and customers and the conditions of performance of the contract were adapted with regard to the production suspension plan. The decision to suspend EPM-ChEP operation is linked to the extremely unfavourable conditions on the world market for carbon and graphite products, in particular for anode blocks, which are the main products of the installation.

In less than a year, the cost of EPM-ChEP anodes dropped by more than 30%, which made the company unprofitable and made production unprofitable. This situation is the result of the supply policy of consumers, who mainly use as a reference the prices charged by Chinese producers who actively engage in dumping. Chelyabinsk 27. September 2019 From 01 October 2019, EPM-Chelyabinsk Electrode Plant (hereinafter referred to as “EPM-ChEP”, member of the EPM Group) ceases its anode production*. EPM-ChEP`s energy, transport, IT infrastructure, production laboratory, firefighters and medical services have been transferred to the DCG management. . . .

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