Bloomberg News

Novolipetsk Idles Furnaces, Cuts Pig Iron Output 13%

November 14, 2008

OAO Novolipetsk Steel will cut planned pig-iron output by more than 13 percent this quarter after idling two blast furnaces at its main mill in Lipetsk.

Production will fall by 325,000 metric tons, the Lipetsk, Russia-based company said in a statement distributed by the Regulatory News Service today.

``The global financial crisis is having a significant impact on the real economy,'' which is ``reflected in lower consumption of energy, steel and other basic materials,'' Chief Executive Officer Alexei Lapshin said in the statement.

Novolipetsk said last month it may cut output and lowered its full-year sales forecast by about 4 percent. Novolipetsk is working to ``adjust'' its investment program and cost-cutting plans, the company said today.

The two blast furnaces, which have annual capacity of 2.5 million tons of pig iron, will be stopped Nov. 14 and Nov. 18. They will restart at the end of the first and second quarters respectively, the company said.

To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net.

To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net.


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