"We do not have current plans to close production at the Bogoslovsky Aluminum Plant," RusAl's press office said by e-mail. "At the moment we are seeking the support of the staff for the tough but forced measures."
Bogoslovsky's union and workers told The Moscow Times on Thursday that the plant's management told them that the smelter might be closed if they did not accept salary cuts of up to 30 percent by April 10.
A drop in world aluminum prices and an increase in electricity costs have brought on such cost-cutting measures, a trade union official said.
RusAl said Thursday that it was negotiating a 25 percent salary cut with the plant's workers but did not comment on the ultimatum.
"The company has been subsidizing the plant for several months already," RusAl said Friday. "We have already cut management costs, revised the logistics schemes and are actively optimizing the supply component."
Bogoslovsky's production costs of $1,672 per ton are among the highest in the company, RusAl said.
Friday's spot price for aluminum on the London Metal Exchange was $1,381.50.
The closure of the plant, which employs 3,700 people, would seriously affect the economy of Krasnoturyinsk, a Urals town of 65,000 people in which the plant is the main employer.
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