The world’s largest steel producer ArcelorMittal has postponed the construction of its new four million capacity steel mill in Temirtau in the Karaganda region of Kazakhstan, where the company operates its subsidiary ArcelorMittal Temirtau.
According to ArcelorMittal Temirtau CEO Frank Pannier, the company is currently “experiencing difficulties due to the insufficient capacity utilization at the existing production facilities,” and, in conditions when demand is slowing down in the world markets, it could not guarantee the mill’s full capacity utilization in the event of its construction. However, Mr. Pannier affirmed that the mill would “certainly” be built in the future.
The project for the construction of a new four million mt capacity steel mill in Temirtau was started in October 2008, and was expected to cost about Tenge 7 billion (approx. $46.43 million). The new mill was expected to boost the company’s annual production capacity to ten million mt.
Arcelor Mittal Temirtau is also reported to have temporarily delayed the implementation of its largest environmental project valued at $120 million for the construction of gas purification facilities at its converter plant, which is a major source of pollution.