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Increased Sales Prompt LKAB to Revise Summer Work Stoppages
06/10/2009 - LKAB revises its originally planned production stoppage after receiving several new orders for pellets and fines for delivery during the summer.
LKAB has revised its originally planned production stoppage after receiving several new orders for pellets and fines for delivery during the summer.
Acting President Lars-Eric Aaro said the updated scheduled was mainly due to deliveries to new customers in Asia. “However,” he added, “we also see a demand in the Middle East, as well as in Europe, where steel producers are starting to replenish their stocks again, although at modest levels.
Under the newly revised schedule, LKAB will operate its KK4 pelletizing plant in Kiruna until July 7, and will continue the production of fines (MAF) in Malmberget until July 9.
“It is very gratifying to see that customers are confident in LKAB and our products, even in these difficult times,” continued Aaro. “We have strong and longstanding customer relations, while we are at the same time doing our utmost to establish relations with new customers on new markets. These efforts are starting to bear fruit.
“However, this does not mean that we are seeing the end of the downturn for LKAB,” added Aaro. “Compared with a normal year, delivery volumes remain low.”
“However, this does not mean that we are seeing the end of the downturn for LKAB,” added Aaro. “Compared with a normal year, delivery volumes remain low.”
The company said that mining and railway operations would also be subject to the change. Production in the sorting plant and in a small section of the Kiruna mine are to continue throughout the summer. Rock reinforcement work is in progress in other parts of the mine. Production in the Malmberget mine and sorting plant is to continue until July 9, after the annual planned maintenance period has been concluded during week 25.
In all other areas, summer stoppages in LKAB's production facilities will proceed as originally planned, for eight weeks beginning June 22.
About 250 employees that had previously been given notice of four extra weeks of free time (in addition to the regular summer vacation) will be affected by the updated production schedule, and will now work in production during the extended period, as described. The company said that negotiations with the trade unions concerning changes resulting from the schedule adjustment would begin immediately.
