In addition to our information message dated 24.01.2018 “Vallex” Group of companies would like to make the following announcement:
At the present stage of its development “Teghout” closed joint stock company (hereinafter referred to as Teghout cjsc) and its team are working on expanding its mineral processing capacity and operating efficiencies. This challenging task required the involvement of not only Armenian, but also internationally recognized engineering companies, who are currently conducting thorough research and engineering analyses. The result of this joint effort, by definition, is going to be a better, more feasible path forward from operational and technical perspectives. It will ensure the ability of Teghout to operate at the highest technological parameters for mineral processing.
Only by completing these tasks the Company will be able to fulfill its objectives of duly meeting its financial obligations and delivering value to all of its stakeholders. Prior to defining and implementing systematic solutions based on industry-leading expert opinions the Company has decided to seize its daily operations and has stopped production.
Unfortunately, under current circumstances the Company cannot maintain neither the workload nor the remuneration levels of its 1200 employees. Furthermore, not having the sources of income without its production the Company has made the difficult, but the only possible decision under current RA Labor code, to issue the two months in advance “Letters of Employment Termination” to its employees. This is an ongoing process, and all Teghout staff have either already received or will shortly receive the employment termination notices. We have also notified the authorities of the situation.
We would like to highlight, that from the moment of receiving the notice until the termination on April 1st, all employees will receive either full remuneration or depending on their work schedule 2/3 of their remuneration due to forced leave. In addition to the above all employees will be paid one-month severance payment equal to the average monthly remuneration of an employee.
After the above-mentioned steps are taken, the Company will be left with a small number of employees who will be tasked with making sure that our mobile and plant equipment and the infrastructure is duly taken care of and maintained while in a shutdown mode.
Simultaneously, Vallex is undertaking all possible measures to bring the layoffs to a minimum by providing employment to some Teghout employees in other Vallex group member companies.
Under current circumstances the Company is shifting into a safety and security mode of operations namely – the security of Company premises and property is entrusted to a specialized private security company which is duly licensed to carry out private guarding activities in the Republic of Armenia.
Taking into consideration “Vallex” Group of companies’ current and planned large investment programs in Armenia and Artsakh, the Chairman of Vallex Group Companies Mr. Valery Mejlumyan has made a decision to separate the functions of the Chairman of the Board of Directors of the Company and the Chief Executive Officer (CEO) of the Company. Henceforth, Vallex Group Senior Vice President Mr. Sahak Karapetyan, who has nearly two decades of experience with the Company, has been appointed Teghout CEO. Mr. Mejlumyan continues to fulfill his responsibilities as the Chairman of the Supervisory Board.
The company remains committed to its mission of growing and developing with the communities and will continue the implementation of its community support programs. For example, the Company has undertaken the financing of the reconstruction of one of the main streets of the village, the 3rd. street, the construction of a new sewage line and the building of a relevant water treatment system.
We are confident that by working hand in hand with our employees and with the community we will overcome all the challenges during difficult times.