According to Rustavi Metallurgical Plant’s management, if the Government does not introduce mechanisms for domestic market protection, the plant will have to fire about 300 employees in September.
New regulations introduced by the US President on aluminum and steel grows taxes and creates essential problems to the field performance.
On the one hand, Rustavi Metallurgical Plant has suspended exports of steel pipes to the USA, because the new imports tax makes the product exports unprofitable, on the other hand, Iranian products have activated penetration into domestic market, the Rustavi Steel management says.
“We have made several statements that Iranian fittings are imported at dumping prices, but the Government has not taken measures against unjust competition. Volume of imports of Iranian fittings doubles on monthly basis. Georgia is an only country, which opens door to Iranian product, while the neighboring countries have already closed borders to the dumping tariffs”, the company representatives said.