UT cuts down number of workers amid coal drop

IDX-listed heavy equipment and coal mining company PT United Tractors Tbk (UT) has started cutting down the number of its workers as part of efficiency measures to help cope with the current drop in coal price, Kontan reported on Tuesday.

?The condition is indeed difficult, because of falling commodities there has to be adjustment in production capacity,? Corporate Secretary Sara K. Loebis told the paper, but did not disclose the number of layoffs.

The current drop in coal price has forced some miners to shut down operations, reduce number of workers, and cut down spending including for heavy equipment purchase as they reduce output.

Sara said that UT this year will focus on after sales service and sale of spare parts. This year, the company hopes to be able to sell 2,000 units of Komatsu heavy equipment. Coal production is expected to be 10 percent lower than realized output last year. The company has yet to disclose the 2015 coal output. (*)