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.