Ferrexpo signs deal with ThyssenKrupp with plans to boost volume
30 October 2019
Ukraine’s largest iron ore pellet exporter Ferrexpo
(FXPO LN) signed its first long-term contract for iron ore pellet supplies with
Germany’s ThyssenKrupp in October, the company said in an Oct. 29 press
release, as cited by Interfax-Ukraine.
In addition, Ferrexpo plans to increase pellet
production volumes to more than 11 mmt in 2020 from the expected 10.4-10.6 mmt in 2019,
the release said. In 2021, Ferrexpo plans to boost its pellet production
volumes by a further 10%, according to the release as cited by Interfax-Ukraine.
The company also said that the recent temporary CEO change
will enable its majority owner, Kostyantyn Zhevago, to focus on his legal
issues. The new acting CEO, Chris Mawe, has been with the company for more than
11 years and will continue serving as Ferrexpo’s CFO.
Dmytro Khoroshun: Ferrexpo’s
plans to boost its production volumes look realistic as the company is expected
to finish the construction of a 1.5 mmt p.a. concentrator
in 2020. Once the new concentrator is operational, Ferrexpo’s pellet production
capacity will reach 12 mmt p.a.
The ThyssenKrupp contract news is positive and is
in line with Ferrexpo’s strategy of securing high-quality, long-term customers,
particularly in Japan, South Korea and Germany.
