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Administration of JSC “Elmavalmshenebeli” Publishes Statement

The administration of JSC “Elmavalmshenebeli” publishes a statement:

JSC “Elmavalmshenebeli” has a really difficult situation to pay for wages. There are 5 months salary arrears, the employees’ claim is legitimate and fair. The debts are fully recognized by the administration of the factory, as indicated in the tables, are declared and are only waiting for the income to pay them.

The origin of arrears is caused by a small volume orders that could not cover expenses, and even with the fact that there is a foreign contractor who has debited debt to “Elmavalmshenebeli” and is expected to transfer the amount. This problem will be solved during the month of March.

Furthermore, other issues are not least. Work plan is as follows:

  1. The contract has already been signed on 8 units of new traction engine for Uzbekistan. The total cost of this order is 23 200 000 USD, and the term of fulfillment is 2 years;
  2. The contractor also signed an agreement on the preparation of new traction motors and supporting machines for the Russian Railways. This order is in two stages and is divided into two contracts. One of them – 6 million US dollar has already been signed, and the second – 8 million US Dollar – at the signature stage;
  3. We have our already traditional contractor, Ukrainian company `Metinvest ~. In 2019, we have to provide 2 traction aggregates and 1 new coconut electric locomotive for repair. The total value of these orders exceeds 2.5 million USD.
  4. Also, the Southern Caucasus Railway requested us to repair their electric locomotives. This additional order is about 1,6 million USD worth;
  5. In addition to the above, we have orders from different foreign companies on the arrays, the total annual cost of orders is about half a million dollars;

So the factory has big plans, ready to perform orders and work at full load as soon as the situation is settled, salaries will be issued and we will get through the financial crisis.