MMK Illicha Orders New Converter

MMK Illicha Steel (MMKI: BUY) has ordered a new converter with an annual capacity of 1.5-1.7 mln mt of crude steel, according to supplier Azovmash. The delivery is planned in 2008, and cost of the delivery was not disclosed. Azovmash is the holding company for machine builders Azovzahalmash (AZGM: BUY) and Mariupol Heavy Machinery (MZVM: BUY). Eugene Cherviachenko: In September, MMK Illicha CEO Volodymyr Boyko announced the company’s plans to invest USD 550-690 into the construction of a converter shop to decrease gas costs. According to Boyko, this is part of the steelmaker’s overall modernization program. Presently, MMK Illicha operates three converters of the same size, which aggregately produced almost 50% of the company’s crude steel in 1H07 (or 1.76 mln mt), the rest of steel is produced at inefficient single-bath open hearth furnaces.