MMK expects 20 percent rise in steel product output in 2011

The Russian steelmaking group Magnitogorsk Iron and Steel Works (MMK) has announced that in 2011 it expects its steel product output to increase by 20 percent year on year, including a 15 percent rise in output in Russia, mainly due to the ramp-up of MMK operations in Turkey and increased capacity utilization in Russia.
 
Overall, MMK expects Russian steel consumption to increase by 10 percent year on year in 2011, mostly driven by pipe-makers and machinery builders, and also allowing for somewhat stronger demand from the construction sector as the construction season begins.
 
MMK said that in 2011 it intends to continue increasing high value-added (HVA) steel product output in Russia due to maximum production volumes at its mill 5000 and the commissioning of the first phase of its mill 2000 in July this year, which will focus on production of high quality cold rolled automotive steel.
 
In addition, MMK said that in 2011 it also expects to complete acquisition of 50 percent minus one share of its MMK-Atakas steelmaking joint venture (JV) in Turkey from the Atakas family, which will enable it "to fully consolidate the financial results of the company."
 
As SteelOrbis previously reported, in a statement dated March 11 MMK announced the signing of a share purchase agreement to acquire 50 percent minus one share of the JV from Atakas for a price of US$485 million.