Sollac Fos considers to increase its capacity by 2005

Sollac Fos considers to increase its capacity by 2005

Arcelor subsidiary Sollac Mediterranee's mill Sollac Fos is planning to improve its annual capacity to 5 million tons by 2005. The mill's annual capacity is around 4.5 million tons. For this expansion, the mill has to revamp its continuous caster and also the productivity. Furthermore, the mill has launched new converters in order to expand steel making capacity. Sollac Fos' two blast furnaces total annual capacity is around 5.3 million tons. Also the mill expects to produce 5.1 million tons steel in a year, with some adjustments. The hot rolled mill has an annual capacity of 5.1 million tons. In addition, Sollac Fos considers to keep production in line with the orders. Due to complex order books and weak demand in the market the mill is planning to cut its production by 10-15% if necessary. Furthermore, Arcelor has also decreased its total production by 10% due to low demand in the market and also to preserve its current price levels. And now Sollac Fos may also follow with production cut.