Khartsyzsk Pipe increases production 40% m-o-m in December
14 January 2011
Khartsyzsk Pipe (UX: HRTR UK) increased output 39.7% m-o-m in December to 55.7 ths mt of steel pipes, its highest production level since July 2009, parent Metinvest announced this week. Andriy Gerus: We expect Khartsyzsk to increase its production 2x times in 2011 to 600-650 ths mt (vs. 298 ths mt in 2010) due to demand from Russian, Asian and EU oil and gas pipeline projects. The market has not yet reacted to Khartsyzsk’s production growth; we recommend BUY (TP: 0.32 USD, upside 110%).
