Nizhny Tagil Iron and Steel Works (NTMK), a subsidiary of the Russian steel producer Evraz Group, plans in 2010 to increase investments in its expansion projects to Ruble 5 billion (about $167 million) from Ruble 3 billion (about $100 million) in 2009, the Russian news agency NEP 08 reports, citing NMTK's managing director Alexei Kushnaryov.
Accordingly, the funds in question will be spent on the reconstruction of NTMK's production facilities. This will include the construction of a second new oxygen converter shop with 3.0-3.5 million mt capacity, the total value of which is estimated at €1 billion. The project will be completed within three years, while the commissioning of the new shop is planned for 2014. As a result, NTMK will be able to increase its annual steel output to seven million mt.
In addition Mr. Kushnaryov stated that in 2009 NTMK will see a 25 percent decrease year on year in its steel output to 3.9 million mt, while its pig iron production will register a decrease of just 6.6 percent to 4.2 million mt. Meanwhile, NTMK's production of rolled products will stay at last year's level, reaching 3.7-3.8 million mt by the end of this December.
"January 2009 was the only month when we made a small loss, while since February we returned to profit. Of course, the profit is less than it was last year. We have earned only half as much from our product sales, as the prices for some products dropped by 30 to 50 percent," Mr. Kushnaryov said.