Mogilev Metallurgical Plant OJSC is planning to invest about $10 million in the upgrading of production facilities in 2008-2010, Director Leonid Markov told a press conference.
According to the source, the plant is planning to raise the annual output of welded pipes to 40-50 thousand tonnes, which will require a new welding mill ($8-9 million). Two more million will be spent on the modernisation of the moulding shop.
In the long term the plant is expected to double its production volumes.
Mogilev Metallurgical Plant OJSC increased steel pipe output by 15.2% in January-May rolling out 52.887 thousand tonnes.
Cast iron production decreased by 7% to 6,138 tonnes.
Cast shot production reduced by 24.4% to 2,375 tonnes, while the output of split shot made 1,524 tonnes (40.8% down).
The source attributes the reduction to the lack of raw stuff a decrease in the number of orders.
Nevertheless, this January-May the enterprise increased commodity output by 11.6% on the year, the total value of commodities produced being BYR 95.9 billion, while consumer goods output rose by 9.1% to reach BYR 1.65 billion in value terms.
In 2007 the company is planning to raise industrial output by 8-9% on the year, while consumer goods output is expected to grow 5% and export is expected to enlarge by 10%. This will require a 7% increase in raw stuff imports, the source reported.
Mogilev Metallurgical Plant produces longitudinal welded tubes, water and gas pipes, steel shapes, cast-iron stand-pipes for rubber sealing washers, and cast-iron shot. All in all, there are 250 types of tubes on the plant's production list. The plant manufactures round steel pipes size 20 mm to 89 mm, shapes steel pipes size 20x20 mm to 60x60 mm.
Since 2006 Mogilev Metallurgical Plant has been part of the Belarusian Metallurgical Plant Production Association, which comprises Rechitsa Hardware Plant and Orsha Knitting Machines Plant.
The major commodity produced on commission in 2006 was steel pipes.