The Russian steelmaker Novolipetsk Steel (NLMK) has announced the temporary shutdown of its blast furnaces No. 2 and No. 4, which have a combined annual capacity of 2.5 million mt of pig iron.
The shutdowns are scheduled for November 14 and November 18, while their re-launches are planned for the end of Q1 and Q2 of 2009, respectively.
As a result of the shutdowns, NLMK's production of pig iron will decrease in Q4 by 325,000 mt, which is 13.5 percent lower than the previously planned volumes.
Commenting on the decision, NLMK's CEO Alexei Lapshin stated, "The global financial crisis is having a significant impact on the real economy. Primarily, this is reflected in lower consumption of energy, steel and other basic materials. Our company is well prepared to respond to the worsening situation. The decision to halt two blast furnaces is a step in this direction. We are currently working on adjusting the company's previously announced investment program, as well as on cost reduction plans and optimization of production processes. As one of the most efficient global steel producers, NLMK will continue to implement its sustainable growth strategy as the market environment improves."