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Severstal Announces Production Cuts in Russia, North America, Europe
10/13/2008 - Slower demand for steel products and recent changes in global economic conditions are prompting OAO Severstal to reduce production across its facilities for the month of October.
Slower demand for steel products and recent changes in global economic conditions are prompting OAO Severstal to reduce production for the month of October. The production curtailments will affect the company’s steel plants in Russia, North America and Europe.
In Russia, Severstal will reduce production for crude steel at its Cherepovets steel plant by approximately 25%. In Italy, Severstal is scheduling October production cuts of 30%. And in the United States, Severstal says it will adjust production to balance with customer needs to an aggregate of approximately 30% across its facilities.
“We consider these measures to be prudent management in a time of rapidly changing market conditions,” said OAO Severstal Chief Financial Officer Sergei Kuznetsov. “We are maintaining close discussions with our customers to support their near-term requirements. Likewise, the company is communicating with suppliers so that we can optimize the supply chain and keep all stakeholders informed of production levels.”
Severstal said that it is currently reviewing its full-year guidance as issued with the company’s 1H08 results.
