Azerbaijan, Baku, August 25 / Trend , I.Khalilova /
Reduction on the construction market in Azerbaijan affected the production process in LLC Baku Steel Company (BSC) - the largest metallurgical enterprise in the country, the company said on August 25.
"The demand for fixtures declined by more than 35 percent, if during the construction boom in 2007-2008 the production in the Baku Steel Company reached a maximum of 280,000 tons per year, in 2009 it is expected to reach 170-200,000 tons," the same source said.
Production capacity of BSC is 350,000 tons annually, with monthly output of 1-1,200 tons.
Last year the company repeatedly suspended activities due to lack of scrap metal, but today due to work of established reception centers and coordinating their work with each other, such problems do not occur. With the current demand for fixtures in the domestic market it is sufficient to collect 400-700 tons of scrap metal. Although 1,500 tons of scrap metal are necessary for the normal production process.
"In general, the current situation with the decrease in construction work affected the activities of metallurgical enterprises in the country, exactly small shops, miniplants, and therefore, Baku Steel Company remains practically the only manufacturer of fixtures, said in the BSC. - And this allows the company to create reserves for scrap metal for the period of increased demand for fixtures.
BSC cut the price of received raw materials up to 115 manat per ton (previously 200 manat) due to the fall in the cost of the ready product - one ton of fixtures totals 530 manat compared to 620 manat in the beginning of the year, whereas previously this figure even reached 1,100 manat.
Baku Steel Company has recently passed re-registration, changing the form of property to LLC. The authorized capital of the company is 36 million manat.
Official rate on August 25 is 0.804 AZN/USD.
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