Duferco plans to cut slab production

Duferco plans to cut slab production

Swiss based steelmaker Duferco is planning to cut slab production at its La Louviere mini mill due to difficult market conditions. The company will idle the electric arc furnace (EAF) during August, October and December 2003. Company officials stated that company will go on production in September and November for certain orders which can only be made using the EAF. EAF has a monthly capacity of around 73'000 tons. The company intends to reduce production by more than 200'000 tons at its plant in Belgium. High scrap prices and weak demand in the EU are the factors that effect Duferco to cut slab production. Also, production costs are currently higher than using a blast furnace. Duferco's blast furnace will go on production at full capacity and EAF in La Louviere is scheduled to restart production in January 2004. However, the mill will continue to monitor the scrap market and demand for finished products. The company will keep the maximum capacity at its other European mills, including Belgium, Italy and Macedonia. Arcelor which is Duferco's joint venture partner in Carsid, also idled its EAF for six months to reduce slab inventories.