Mariupol Illicha To Build A Coke Plant?

The company may build a coke plant if it unable to buy one in Ukraine. Currently, Mariupol Illicha (MMKI: HOLD) is negotiating with Concern Energo about buying Yasinovsky Coke and with Pryvat about Bagley Coke. If Energo and Privat refuse, Mariupol Illicha will likely start construction of its own plant with a capacity of about 1.6 mln mt. According to MMKI?s chairman Volodymyr Boyko, the estimated cost of this project is USD 350 mln. Concorde Capital: MMKI has the least sufficient raw materials among Ukrainian steel producers. The acquisition or construction of a coke plant may hurt MMKI?s main coke supplier Avdiivsky coke which delivered more than 38% of its total output to MMKI during Jan-Jun 2005. Also, the company will likely suspend its import of coke from Russia?s Altaycoke. The Russian supplier supplied 344 thousand mt of coke to MMKI during the first 7m05.