Nov 2 2010
Evraz Group S.A. (LSE: EVR) (“Evraz”) announces that its subsidiary in the Czech Republic, Evraz Vitkovice Steel (“EVS”), has reached an agreement with ArcelorMittal Ostrava over the supplies of liquid pig iron from ArcelorMittal Ostrava (“AMO”) to the steelmaking facilities of EVS.
The agreement is based on a price formula that both sides consider mutually acceptable. The agreement will cover approximately the next five quarters. The supply of pig iron from ArcelorMittal Ostrava to Evraz Vitkovice Steel will resume in early November 2010. The new agreement implies the annual minimum set at the level of 550,000 tonnes. As such, AMO’s supplies will cover about 80% of EVS’s requirements. Part of EVS rolling needs will still be met by the supply of slabs from Evraz's NTMK plant in Russia with the remaining portion acquired from other suppliers in Slovakia, Ukraine, Turkey and other countries.
Evraz Vitkovice Steel has already started preparation of its steelmaking facilities for re-launch.
Source: http://evraz.com/