The Ukrainian steelmaker Industrial Union of Donbass (ISD) and
Switzerland-based Duferco International
Trading Holding Limited (Duferco) have reached an understanding with the US company Esmark Incorporated for the supply of at least 1.4 million metric tons of slabs per year for Esmark service centers. The deliveries will start in the first quarter of 2007 and are intended to continue for a period of six years.
This agreement is designed to strengthen Esmark's position both in the domestic and international market. Head of Esmark, James P. Bouchard commented that Duferco-ISD would be able to supply the company with not very expensive slabs and change the structure of Wheeling-Pittsburgh
production costs in the case of a merger with Esmark. Mr. Bouchard further added that the new agreement will allow Wheeling-Pittsburgh to raise steel
production at its electric blast furnaces from the current 1.7 million metric tons a year to 2 million metric tons a year, as well as allowing an increase in HR output up to 3.4 million metric tons.