Alchevsk Iron & Steel To Construct Combined-Cycle Plant.

Mitsubishi won the tender for the plant’s construction. The plant’s installed capacity is projected at 450 MW. Construction will start this spring. No details on the project’s cost were provided. Concorde Capital: The combined-cycle plant will make Alchevsk Iron & Steel (ALMK: BUY) self-sufficient in electricity. In addition, its by-products coke and top gas will be recycled and partially replace natural gas in the company’s steel production, which will reduce ALMK’s costs. We think that the new plant will operate on coke produced by the adjacent company Alchevsk Coke (ALKZ: BUY) thereby creating an additional demand for its products. In our view, the incorporation of Alchevsk Coke into Alchevsk Iron & Steel would be the next logical step in optimizing the steel production by the latter, as both companies are controlled by the same key shareholder, Industrial Union of Donbas (IUD).