Mariupol Illich Steelworks to Invest EUR500 Mln in New Technology
OREANDA-NEWS. Mariupol Illich Steelworks CEO Mr. Boyko announced that the plant would spend EUR 400-500mn on the construction of a new converter shop in 2008. The company plans to phase out open hearth steel making, which accounts now for 47% of MMKI steel output, in favor of the oxygen converter method. Converter steel is about 10% cheaper than open hearth steel and allows minimizing natural gas consumption, which is important in view of the probability of a gas price increase.
In the judgement of Millenium Capital experts, the abovementioned advance will result in a margins improvement and an increase in cost competitiveness of the plant's production.
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