Owing to the severe slowdown in the automotive sector, Mahindra Ugine Steel Company (Musco) and Mahindra Forgings (MFL) has stated that it will cut production by means of plant shutdowns and also through reduced working days.
In an announcement sent to the Bombay Stock Exchange, Musco said that due to the on-going economic slow down in the steel as well as automotive industry, and taking into account the slowdown in demand for the company's product, it has been decided to align the company's production plan with the expected demand.
Accordingly, the company has reduced the number of shifts to one or two shifts from three shifts earlier at its manufacturing plants. In addition, all its plants, except the Nashik plant, will work for five days a week instead of seven days a week.
Musco is an alloy steel manufacturer and supplies to Tata Motors, Ashok Leyland, Maruti Suzuki, M&M, Cummins among others.