CEO: NLMK steel output to fall to 16 mln tns in 2019

LIPETSK, May 31 (PRIME) -- Russian steelmaker Novolipetsk Steel (NLMK) plans to reduce steel production to about 16 million tonnes in 2019 from 17.493 million tonnes in 2018, President Grigory Fedorishin told reporters on Friday.

“The amount of steel production will fall at the Lipetsk facility because a big blast furnace and a big converter will shut down for repairs. We intentionally united these into one year to lose less volume,” Fedorishin said.

All high-technology products will be made in the same amount as in 2018 or the production can slightly grow, he added.

The repair will continue in 2020 and after its completion, the facility’s steel production capacity will rise to 14.5 million tonnes.

Key beneficiary of NLMK Vladimir Lisin said that the company postpones upgrade of its U.S. facilities in light of economic uncertainty. “We will wait until they figure sanctions and relations out,” he said.

Fedorishin also said that the U.S. division’s investment program was earlier planned at up to U.S. $400 but now only small projects are supported to maintain operational condition.

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