Uzmetcombinat drops steel production by seven percent
Uzbekistan, Tashkent, April 6 /Trend D.Azizov/
The Uzbek Metallurgical Plant (JSC Uzmetcombinat Bekabad, Tashkent region) which accounts for 90 per cent of the production of ferrous metallurgy in the republic in January-March 2012 has reduced steel production by seven per cent, compared to the same period in 2011, reaching 165.2 thousand tons, the company said on Friday.
Ferrous metals in the first quarter decreased by 1.5 per cent to 167.3 thousand tons.
The plant produced 45.6 thousand tons of milling balls (an increase of 9.8 per cent, compared to January-March 2011) during the reporting period.
Uzmetcombinat increased steel production by 2.2 per cent compared to 2010, up to 733.1 thousand tons and rolled ferrous metals by 2.6 per cent, to 709.9.
Uzmetcombinat is the only steel industry company in Central Asia working with scrap metal. The plant was commissioned in 1956. Previously it recycled scrap metal coming from all the republics of Central Asia. At the present time the company's power isn't fully loaded due to reduced supplies of scrap.
The company will import 280,000 tons of scrap iron, including those on the conditions of tolling in 2012 in accordance with the decree of the President of Uzbekistan issued earlier this year.
In accordance with the decision of the head of the state, Uzmetcombinat is exempt from payment of customs duties on the amount of scrap iron and steel used to manufacture steel retained as payment for services in processing the scrap and waste of ferrous metals imported into the Republic, including the additional volume imported in 2011.
The company is also exempted from the mandatory sale of foreign exchange earnings in the implementation of calculations for metal products for waste and scrap of ferrous metals imported from outside the country under the tolling.
The authorised capital of the company currently sits at 45.72 billion soum, with 72 per cent of its shares owned by the state on behalf of SPC.
Official exchange rate on April 6 is 1846.65 soum / $1