Baku Steel Company predicts to produce over 200,000 tons of metal products in 2009
Azerbaijan, Baku, Oct. 22 / corr Trend E.Ismayilov /
The biggest metallurgical company of Azerbaijan Baku Steel Company (BSC) plans to produce approximately 200,000-250,000 tons of products by the end of the year, spokesman for the company Namik Ahmedov said.
The company produces 22,000 tons of products in average in a month, using raw metal in the volume of 1.5 times more than the produce, Ahmedov said. Definite problems in the production, which were observed earlier, were linked with deficit in raw materials. Since the very moment of establishment of insufficiency of raw base was the major reason hindering to attain nominal capacity of output. Currently, the situation with purchase of crude has been normalized.
"Annual production capacity of the company is 350,000 tons of raw material, whilst we produce only 220,000-250,000 tons and the insufficiency of raw material is the major reason. Now, we have normalized the situation," Ahmedov said.
At present, the company purchases raw metal at $115-120 per ton, while the ready produce is sold at around 530 manat per ton.
Major part of the company's products is sold within the country and only the smallest part is sent for export.
"Since its very establishment the company has targeted to satisfy the domestic demand in construction materials," Ahmadov added.
Baku Steel Company has recently undergone re-registration, changing its forum of ownership. The statutory capital of the company is 36 million manat.
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