Metinvest plans new rolling mill start in May

Ukrainian steelmaker Metinvest plans to commission its new 500-600,000 tpy rebar and sections rolling mill at Makeevka in May this year, sales director of Metinvest’s steel and rolled products division Andrey Parkhomchuk told MB.

Speaking on the sidelines of CRU’s 15th World Steel conference in Vienna, Parkhomchuk said that the new mill was part of the group’s strategy to offer more finished products to the market and improve its operations.

Following the start-up of the new mill, Metinvest will only offer around 50,000 tonnes of billet to the merchant market, he said.

“We used to be the biggest billet producer in the world,” he said. “From May we will produce more finished products at Makeevka – in 2009 our market share will be larger.”

Addressing delegates at the conference, Parkhomchuk said that Ukraine is ideally positioned for future growth in steel production, despite the immediate impact of the economic crisis.

“Yes demand has fallen, but let’s look at it from a different point of view,” he said. “It helped us to take the decision to stop production in many inefficient areas. After the crisis we will be much more healthy.”

In order to increase its share of the market Metinvest is also working to minimise logistics to its customers, he told delegates.

“For Metinvest the economic crisis, while important, is an opportunity,” he said. “At Metinvest we are optimistic – we are continuing to become a stronger business even in tough times.”

Copyright © Metal Bulletin Ltd. All rights reserved.