Metinvest to increase steel output by 61% after Ilyich deal

Metinvest, Ukraine’s largest steelmaker, plans to increase production by 61% this year after combining assets with competitor Mariupol Iron and Steel Works named after Ilyich and modernizing its plants.
Mr. Sergiy Novikov, CFO of Metinvest, said the steelmaker expected to produce as much as 15 million tons of steel in 2011.
He said the company would concentrate on increasing steel production and would be a bit more conservative in terms of iron ore prospects.
He said “Going beyond 2013 we do see a shift more to the steel segment.”
He added that underpinning that shift was investment in revamping its plants.
Metinvest is completing a spending plan with Siemens AG for the replacement of parts at its Yenakievo, Azovstal and Ilyich steel works as it seeks to create modernized and efficient facilities.
Metinvest and the Mariupol Iron and Steel Works named after Ilyich (MMK Ilyich) are merging assets to create a venture with annual output capacity of 20 million tons of steel.
Metinvest, owned by Ukraine’s richest businessman Mr Rinat Akhmetov, agreed to control 75% of the venture and buy shares in MMK Ilyich when it announced the deal last year. It’s among global steel producers seeking to expand as Asian demand for the alloy grows. (Bloomberg)