Evraz shuts down Stal NK

The Russian Evraz Group has announced its decision to shut down Stal NK, which is a daughter company of its subsidiary, Novokuznetsk Iron and Steel Works (NKMK). The use of old technology in steel production, which seriously pollutes the air, was the main reason behind the decision to close Stal NK, taken by Evraz in October 2006. Stal NK's steel smelting workshop was closed in December, while the remaining production facilities will be closed by April 2007. The total liquidation of the enterprise will take about 1.5-2 years. In 2005, Stal NK produced 1.19 million metric tons of crude steel, accounting for 8.5 percent of Evraz's total crude steel production, and also produced 1.4 metric tons of steel products, mostly billets. Evraz's representatives did not specify how these losses in production will be recovered.