Alchevsk Iron & Steel Capacity to Double by 2009

Alchevsk Iron & Steel (ALMK: BUY) announced it will launch a state-of-the-art new blast furnace in the beginning of 2009. The capacity of the new furnace will allow producing 3.0 mln mt of pig iron annually. After the launch total pig iron capacity will increase to nearly 8.0 mln mt per annum. Eugene Cherviachenko: The construction is part of the steel mill’s expansion program. On November 27 ALMK launched a new converter, and confirmed plans to launch another one in 2Q08 (see our alert of November 27, 2007). As a result the mill’s steel making capacity will almost double to 9 mln mt. We reiterate our recommendation BUY.