Key Russian Defense Supplier Shuts Down Steel Line, Fires Hundreds as Losses Mount

The Ashinsky Metallurgical Plant (AMZ), one of Russia’s largest producers of specialty alloys for the defense industry, plans to suspend operations at its stainless-steel division and dismiss more than 300 employees by the end of the year, according to The Moscow Times on October 27.

Regional prosecutors confirmed that the facility, located in Russia’s Chelyabinsk region, will “conserve” the division as part of a broader production cut.

Company representatives told employees that they would be offered job placement assistance in cooperation with the local employment service, trade unions, and city officials.

The plant’s management said the decision is aimed at “concentrating resources on the company’s core production and modernization,” adding that the timeline for restarting operations would depend on “market demand for stainless-steel consumer products.”

Workers told The Moscow Times that 376 people—mostly women aged between 45 and 57—will lose their jobs. They also reported that “other workshops are barely operating,” with many employees placed on unpaid leave or reduced schedules.

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AMZ is considered a city-forming enterprise and a key supplier of amorphous and electrical steel, heavy plate, and other special alloys for Russia’s defense, aerospace, nuclear, and energy sectors. The company also manufactures around 700 types of consumer goods.

Ownership of the plant changed in 2024, when Moscow-based firm Ural-VK acquired its shares. Ural-VK’s CEO, Boris Tsarev, also heads the steel company Armada, which owns Amurstal.

Financial statements show that AMZ posted a net loss of 219.3 million rubles (approximately $2.4 million) in the first quarter of 2025, compared to a profit of 2.4 billion rubles (around $26.7 million) in the same period of 2024. Revenue dropped by 60%, falling to 7.26 billion rubles (roughly $80.7 million).

The Moscow Times also recalled that in 2022, Russian authorities detained former AMZ general director Vladimir Myzgin on fraud charges related to the alleged illegal transfer of shares to offshore accounts. The case was closed in March 2023 due to the statute of limitations.

Earlier, The Moscow Times reported that one in six major Russian companies is unable to meet its debt obligations, with firms like VK, Ozon, Rusal, and Mechel among those struggling. Total net debt has reached nearly $42 billion, as high interest rates and economic stagnation take their toll.

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