OREANDA-NEWS On 18 February 2009 was announced, that Mariupol Ilich Iron and Steel (PFTS: MMKI) signed an agreement on gas supply with Naftogas of Ukraine NJSC. The gas price for the steelmaker is set at UAH 2,397 (about USD 307) per 1 thousand m3.

In January, the company paid in full for the gas and estimated gas volumes required for its production process in February 2009.

Vladimir Boiko, the company CEO, said that the enterprise capacities utilization at the moment is almost 60%.

The major amount of investment planned for 2008 the company plans to use for construction of coal-dust injection facility and major repairs, specifically on the suspended blast furnace No. 5.

Presently, according to Mr Boiko, the salary fund now is 18% in the production cost structure, although he believes that its normal share is about 6%.

Besides, the chief executive informed about aggressive cut of costs. In particular, due to company structural units reorganization the number of employees was cut by 5 thousand. In addition, starting from September 1, 2009, the company will transfer its kindergartens, which give jobs to almost 1.5 thousand persons, on the balance sheet of Mariupol municipality.

In January 2009, the company production output amounted UAH 800 mn, while the salary fund amounted to UAH 153 mn.