Baku Steel Company Announced Expectations on Terms on Resuming Production

Business Materials 2 February 2007 19:41 (UTC +04:00)

Baku Steel Company (BSC) hopes to resume the production in March, 2007, the press-service of the Company informed Trend.

Work on purchasing scrap metal is currently underway. However, the reserves are not sufficient to resume the production, the Company said. BSC has temporarily suspended its activity due to the shortage with raw materials to be used in the production in the enterprise. The enterprise daily need in the raw materials is over 1,000 tons. According to BSC, it is vitally important to the Company to resume the production within one month.

All 2,000 employees of the Enterprise have been sent for a leave. This vacation will expire in the first quarter of February, 2007, and we shall do our best to find a way out of the existing situation to avoid complicating it, the press-service of the Enterprise said. Touching upon the issue on buying raw materials abroad, the Company considers that it is undesirable and inefficient, as it will certainly impact the prices on the production and they will rapidly increase. It may affect the consumer's capability. BSC production capacity is 350,000 per day. In 2006, the volume of the production of BSC reached 300,000 tons a day. The enterprise has recently increased the prices on purchasing scrap metal due to the advance in prices on fuel in order to stimulate the process of collecting scrap metal. If the Enterprise earlier paid $80-100 for 1 tons of scrap metal depending on its quality, the present costs reaches $115 without VAT.