MMK will postpone the decision to launch steel production in Turkey due to external uncertainties


MOSCOW, may 8. /TASS/. Magnitogorsk metallurgical combine (MMK) will postpone a decision on resumption of production of hot rolled steel coils in the Turkish plant MMK Metalurji. This was announced during the conference call, the CMI Director for Economics, Andrei Eremin.

“As for the decision on the beginning of the reception staff in the (Turkish) company – we are still a start is not given, we delay a moment to clarify the situation in Europe (will there be import duties on steel, by analogy with the USA). Well continue to see that there is uncertainty over duties in the United States that were imposed on the European States. Accordingly, we wait, when the situation will become more clear,” he said, answering a question about what impact does the introduction of duties on the timing of the project in Turkey.

According to Eremina, the company took the decision to start production in February 2018, “until, as was imposed duties on steel in the United States.” Earlier it was reported that production could be resumed in July this year.

He also noted that Turkey is currently considering the introduction of duties on steel, which would be positive for Turkish “daughters” MMK.

About MMK Metalurji

The MMK plant in Turkey was commissioned in 2010, investments in the project amounted to $1.7 billion.

Two years after launching the hot-rolled products at MMK Metalurji was stopped due to adverse economic factors, in particular in connection with the rising cost of raw materials and falling demand.

The production capacity of MMK Metalurji will annually produce 1.8 million tons of hot rolled steel.

MMK is among the world’s largest steel producers and holds a leading position among the enterprises of ferrous metallurgy of Russia. About 84,26% of the shares belong to the Chairman of the MMK Board of Directors Viktor Rashnikov.

Source