Production pruning - Turkish Cemtas to reduce production in Q4
Friday, 02 Oct 2009
Steel Orbis reported that Bursa based Turkish steelmaker Cemtas Celik Makina Sanayi ve Ticaret AS announced that in the last quarter of 2009 it will switch to a dual shift regime and will idle its production and sales operations during some weeks.
According to the company's release, the decision has been made in order to balance supply with demand which is foreseen to be low in the Q4 of the current year due to the expected stagnation in domestic and foreign automotive and machine manufacturing industry and because destocking activity has yet to be concluded by the company's customers.
The company stated that it has applied for a working fund for reduced hours.
In the H1 of 2009, Cemtas' meltshop which has an annual capacity of 153,000 tonnes decreased its billet output by 51% YoY to 36,344 tonnes while the output of its rolling mill with an annual capacity of 228,000 tonnes, totaled 33,000 tonnes decreasing by 54% compared to H1 2008.
