Nord ceases work of its enterprise in Donetsk as of August 1st. Fixed assets will be mothballed 07/28/2016 15:56:45. Total views 1010. Views today — 0.

The largest Ukrainian manufacturer of refrigeration equipment Nord PJSC, currently registered in Kramatorsk (Donetsk region), ceases work of its enterprise in Donetsk as of August 1st and its fixed assets are mothballed. Official statement of the Nord Supervisory Board announced that on Wednesday, - reports Interfax-Ukraine.

The corresponding decision was made by the Supervisory Board of Nord PJSC on July 11th in connection with the inability to maintain production activities in the circumstances.

"When Nord PJSC does not only controll, but can not even establish determining factors for normal functioning, production activity is impossible; the only rational factor is mothballing of plant and equipment at the production site in Donetsk," - says the report.

The Supervisory Board stresses that it and the board were ordered to execute decision of annual general meeting of shareholders as of April 22nd.

The AGM determined that to continue production activities would be possible only in case of ensuring its continuity which greatly depends on the operational performance of logistic processes for import of materials and export of finished products, as well as in the case of cost-effective activities and fulfillment of the plan for May, June and July.

However, the report says, according to the results of May and June, that the loss from business activity amounted to 7.83 million UAH, logistics problems are not solved, it does not allow to maintain regular and predictable planning and work to produce household appliances.

In this regard, the Supervisory Board declared the execution of the objectives set at the shareholders' meeting on the part of the Board as unsatisfactory and decided to cease activities and mothball fixed assets and organize preserving of working capital.

To make this decision, the Supervisory Board of Nord PJSC appointed a commission on mothballing of the plant and equipment headed by the chairman of the PSC. "The main aim of the commission is to ensure mothballing of fixed assets and existing materials in good operating condition, solution of social problems for the period of forced activity cease," - says the report.

The head of the commission shall report to the Supervisory Board on a monthly basis.

"The issue of re-activation of the fixed assets and termination of the commission activity is within the scope of jurisdiction of the Supervisory Board of Nord PJSC," – says the report.