Russian steelmaker, Severstal, is clearing the decks for a major downturn in the global steel industry by announcing major productions cuts.

The company has announced on Friday that it will cut crude steel production by 25% in Russia, as well as cutting total production at its U.S. and Italian operations by 30%.

In a statement accompanying the announcement Severstal’s Chief Financial Officer, Sergei Kuznetsov, said;

“We consider these measures to be prudent management in a time of rapidly changing market conditions. We are maintaining close discussions with our customers to support their near-term requirements. Likewise, the company is communicating with suppliers so that we can optimize the supply chain and keep all stakeholders informed of production levels.”