Steelmaker Dunaferr Zrt soon plans to start rebuilding one of its two furnaces at a cost of several billion forints, the company announced.
Dunaferr declined to reveal the exact cost of the reconstruction, but said Russia's Uraldomnaremont had won the contract for the project in a tender. The furnace will be shut down on July 16 and reconstruction will take 45 days. Dunaferr's regular summer maintenance routine will be scheduled around the reconstruction.
Dunaferr processes an annual 1.4 million tons of raw materials in each of the two furnaces. The furnace undergoing reconstruction was last rebuilt in 1997.
Dunaferr announced earlier it planned to produce 1.8 million tons of rolled steel products in 2006, spending €54 million on developments at the same time. Dunaferr did not disclose its financial results from 2005.
A consortium of Ukraines's Donbass and global steel giant Duferco bought Dunaferr in 2004 in a deal worth about Ft 78 billion, most of it debts. Additionally, the consortium promised to make almost Ft 100 billion in further investments.