UPDATE 1-ArcelorMittal Kazakhstan unit cuts capacity

Mon Jul 14, 2008 12:33pm BST
 
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(Adds detail, spokesman on further plans)

ALMATY, July 14 (Reuters) - ArcelorMittal's (ISPA.AS) steel unit in Kazakhstan has cut production capacity due to disruptions in electricity supplies, the company said on Monday.

ArcelorMittal Temirtau, which exports most of its steel to China and Russia, said in a statement it had to stop two out of three existing blast furnaces following disruptions on Saturday.

It did not say by how much its production fell as a result.

"The most critical situation occurred in the blast furnace department," the company said.

"Over the next few days the combine will work in a limited regime (one blast furnace)," it said in a Russian-language statement.

It added that it had asked the Kazakh government to investigate the matter to avoid disruptions in the future.

Separately, the company's Kazakhstan spokesman, Nikolai Kubrakov, said ArcelorMittal Temirtau was likely to dip into its stocks to ensure steady exports.

"It's difficult to say how this will impact exports. It's still unclear," he told Reuters by telephone from Temirtau. "Reserves and stocks will be used for now."  Continued...

 

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