KRASNODAR, Aug. 11 - The Industrial Union of Donbass will not start building a steel plant in Armavir in the Krasnodar territory in southern Russia until 2012, the city administration told Interfax.

The plant would not in that case be commissioned until 2016.

IUD has set an entity up, CJSC Armavir Metals Plant, and an office with 20 staff, who have now been laid off. The company's acting director, Dmytro Bobryshev, told Interfax that the project had indeed been delayed, but not called off.