Ukrainian steel producer DMPZ (Donetsk Metal Work) is negotiating an order with Turkish company CVS for the reconstruction of its rolling mill, directed towards increasing the mill's capacity by 15 percent.
After the contract is signed, the necessary equipment for reconstruction is expected to be supplied in May 2009, while the reconstruction is scheduled to be completed by Q4 2009.
The financial details have not been disclosed.
Moreover, DMPZ earlier placed an order with the Italian company Forni E Combustioni for the supply of a modern reheating furnace, the commencement of which is scheduled for the end of the current year. The new furnace will allow DMPZ to decrease by two times its natural gas consumption, and to reduce the amount of steel lost at scale formation.
During January-September 2008, DMPZ's finished steel production decreased to 73,000 mt, down 36.5 percent compared to the same period last year.