October 07, 2008

Istil posts loss for 2007

Interfax reported that the Istil Ukraine mini steel mill closed 2007 with a net loss of UAH 16 million as compared to a net profit of UAH 11.5 million in the previous year.

The report said Istil's sales grew by 54% YoY to UAH 2.613 billion in 2007. Operating profit was little changed at CNY 47.3 million as margins narrowed due to higher prices for raw materials, energy and rail freight.

Commercial production from the mill's own steel continuously cast billets, rolled billets and ingots grew 13% to 992,300 tonnes, while tolling producing from steel supplied by Donetskstal increased by 23% to 368,100 tonnes.

Istil said that in 2007 it began making large diameter billets and annealed ingots from alloyed steel. Production of pipe billets jumped 120% to nearly 2,400 tonnes.

Mr Faruk Siddiki VP of Istil Ukraine said that the mill intends to produce 1.1 million tonnes of molten steel in 2008.

Istil Ukraine a modern mini steel mill with electric smelting, reducing and scrap shops has capacity to produce up to 1 million tonnes of steel and 1.2 million tonnes of rolled products per year. Berycan, which represents investment firm Mirinvest and trader Stemcor, signed an agreement in January 2008 to buy 100% of the Istil holding, which includes the Istil Ukraine mill.