The largest Ukrainian iron ore pellet producer, Poltavsky GOK (PGOK), expects to register a reduction in its iron ore pellet output for 2009 of eight percent, or 0.7 million mt, to eight million mt, compared with the expected production results for 2008, due to the global financial crisis.
According to its previous plans, PGOK had scheduled to produce 10.2 million mt of iron ore pellets in 2009, and 9.6 million mt in 2008. However, by the end of the current year, the company is expected to register a decrease of four percent year on year in its iron ore pellet output to 8.7 million mt.
"In October the Ukrainian market has refused to purchase our pellets, and we were forced to reduce production by 45 percent," Poltavsky GOK general director Viktor Lotous stated. Whereas previously PGOK had planned to produce 750,000 mt of pellets in November, currently it expects to output about 500,000 mt, added Mr. Lotous.
Poltavsky GOK does not plan any layoffs of employees.