MYTILINEOS Holdings S.A. informs the investors that the General Assembly of the Shareholders of its subsidiary Sometra S.A., in which it holds an interest of 93%, resolved in its meeting of 26 January 2009 to suspend temporarily the production activity of the Zinc-Lead production plant in Copsa Mica, Romania, and to drastically reduce the number of personnel.
This decision was considered necessary due to the extremely adverse conditions that prevail in the international markets for metals in combination with the lack of raw materials for the production of zinc, after the world?s only bulk concentrate mine stopped operating. It is pointed out that the price of zinc in London?s Metal Exchange (LME) registers an all-time record low of only 1,100 USD/ton, down from 4,000 US/ton in early 2008.
The temporary suspension of production of Sometra will significantly limit operating losses from the corresponding activity, and will thus impact positively on the Group's financial position.
Suspension of the Sometra operation will become effective immediately and will be carried out in a way that will allow the plant to resume operation without technical problems or significant additional costs. The Group's Management will in parallel be following closely the developments in the international markets, in order to take the appropriate decisions for the future should drastic changes occur.