According to the Alchevsk Iron and Steel Works’s CEO, the mill should gradually increase its monthly crude steel output from 300,000 tons presently to 420,000 tons by September 11th implying full utilization.
He also mentioned that the increase would not involve the re-commissioning of inefficient OHFs, which were shut down in November 2010.
Millennium Capital analyst said “The news is positive for ALMK, as higher utilization would mean higher sales and lower unit costs that will likely result in improved margins for the company. The announced plans are in line with our expectations. Importantly, the management is confident that the planned production hike can be sufficiently supported by working capital and raw materials, the key areas of concern”. (Millennium Capital)