Avdeevsk Coking Plant (AKHZ), metallurgical coke producing subsidiary of the Ukrainian group Metinvest Holding (Metinvest), has announced its production results for 2007.
Accordingly, during the period in question, AKHZ increased its metallurgical coke production by 11.4 percent year on year to 3.03 million metric tons.
Commenting on the results, AKHZ has stated in its release that, due to the instability of coking coal supplies in 2007, the plant produced 200,000 metric tons less of metallurgical coke than it had planned for 2007.
AKHZ's general director Gennady Vlasov emphasized that the problem with coking coal supplies had been persistent throughout 2007, but was exacerbated especially after accidents at the Zasyadko mine in Ukraine. In addition, in 2007 the primary cost of production increased due to the rise in the prices for coking coal, (up at least 50 percent for coking coal from Ukrainian state-owned enterprise Ugol Ukraine, and up by 100 percent for separate grades of coking coal supplied from Russia, which have no substitutes in Ukraine), he added.
Speaking on the plant's plans for 2008, Vlasov stated that AKHZ's production plans for 2008 are less optimistic than those for 2007, taking into account the current situation in the Ukrainian coking coal market.