BSC Could Manage to Reduce Prices on Armature in Azerbaijan Market

Business Materials 23 February 2007 17:11 (UTC +04:00)

Azerbaijan, Baku/ Trend , corr. S. Babayeva/ Ali Askari, the Vice-President of Baku Steel Company (BSC), said that starting from the date when the Enterprise resumed its production, BSC could manage to have effect on reduction of prices on the local market. According to him, starting from February, 2007, prices on armature reduced by 10%.

"We are doing our best so that to resume the production, avoid deficit and increase of prices in the market," said Mr. Askari.

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. Work on collecting scrap metal is underway now, and the activity of the plant will be restored after the required volume of raw materials is collected.

The production capacity of Azerbaijan second largest tax payer is 350,000 per day. The number of its employees exceeds 2,000 ones. 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.

The Vice-President of the Company said that taking into account the situation with the lack of raw materials for the production, in 2007, the forecast on the production may reach a half of the projected capacity of the Plant - about 180,000 tons. "Despite of this fact, we are interested in working in the Azerbaijan market," said Mr. Askari.