INTERVIEW-Kazakhstan wants to boost steel output to 6 m tonnes by 2007

/REUTERS, Temirtau, Tatyana Seroshtanova, May 31, 04/ - The only Kazakh steel casting plant Ispat Karmet contemplates boosting its output from last year's 4.9 m tonnes to 6.013 m tonnes by 2007, Ispat Karmet's general director told Reuters. Ispat Karmet partially owned by LNM Group anticipates higher sales thanks to China's decision to cancel antidumping duties on imported steel and looks forward seeing Kazakhstan as a member of WTO. 30 percent of company's 2002-2003 output designated for export was shipped to China. Other major customers include Russia and CIS countries (20%), Iran and other Asian countries (nearly 30%). Early this year China introduced antidumping duties on cold worked steel imported from a number of countries, including Kazakhstan, but according to different sources, Chinese officials may revise their decision. "Chinese agreed to revise the duties. They will consider the issue on June 1", said Naval Choudhari, the Director of Ispat Karmet. Choudhari hopes that Kazakhstan enters WTO soon (Kazakh officials planned to do so by 2005). "It will help Ispat Karmet greatly", he said. According to him, Kazakhstan would benefit from reaching new markets shall it join the organization. Neighboring China is the WTO member that apportioned last year a quota for Kazakhstan for delivery of nearly one million tonnes of steel. Over quota amounts are subject for 14% customs 'tax'. "We export 1.5-1.6 million tonnes of steel (a year) to China", Choudhari told. Following table includes company's estimations of output production and steel shipments (in million tonnes): ------------------------------------------------------- 2007 2006 2005 2004 2003 -------------------- ----- ----- ----- ----- ----- Melted steel production 6.013 5.502 5.469 5.400 4.907 Rolled steel shipped 5.263 4.675 4.514 4.240 3.780 ------------------------------------------------------- Actual data on production of cast iron, steel and finished rolled steel (in million tonnes): ----------------------------------- 2003 2002г --------------------- ----- ----- Finished rolled steel 4.040 3.886 Steel 4.908 4.805 Cast iron 4.137 4.008 ----------------------------------- Choudhari also told that the company eyes on backward horizontal expansion to provide itself with all necessary raw materials. PIPES FOR OIL FIRMS Ispat Karmet plans to erect a pipe-producing plant for oil and gas firms in Aktau by mid 2005. The capacity of the first unit will reach 60,000 tonnes of pipes a year. Choudhari said Ispat Karmet would rely on KazMunaiGas state firm's orders but rejected to tell prices and volumes. "We produced sample pipes that plant will be making, so that they (KazMunaiGas) could test it...", he added Estimated cost of the project is $65 millions. According to Choudhari, the construction would be financed only with internal funds. Choudhari added that Ispat Karmet would invest additional $580 million in its operations within next years. [2004-05-31]