NEW YORK Evraz Plc is
planning a $32-million investment at its Pueblo, Colo., rail
mill to boost output by 10.5 percent to 580,000 tonnes
"We are now making some
investment in Pueblo, which should give us (a) material
increase in production," Alexander Frolov, chief executive
officer of the London-based company, which owns Evraz Inc.
North America, Chicago, said during an April 11 conference call
to discuss the steelmakers 2012 results. Production at
Pueblo is expected to be around 500,000 tonnes this year, "with
(a) further increase in 2014."
The expansion will be completed
by the third quarter, according to a company presentation.
A previously announced
heat-treat capacity expansion at the steelmakers Calgary,
Alberta, pipe and tube mill (
amm.com, Jan. 25) is expected to be completed in
the fourth quarter at a cost of about $64 million, according to
Steelmaking utilization rates at
Evrazs North American operations remain high, much like
in 2012, the company said. "Utilization is close to 100
percent. We produce as much as we can," Frolov said.
"On the rolling side, its
also close to 100 percent, though some pipe-making facilities
are not fully utilized," Frolov said in response to a question
about North American capacity utilization, noting that the
companys pipe-making utilization rate was still "above 80
The company is "neutral" on
pricing and "maybe positive" on volumes for its North American
operations this year, Frolov said.
Revenue for the companys
North American steel segment totaled $3.05 billion last year,
down 4.5 percent from $3.2 billion in 2011, with per-tonne
revenue declining for all products except tubulars, according
to the presentation. The company saw "positive price dynamics
for high-value tubular goods," chief financial officer Giacomo
Baizini said during the call. Evraz North Americas crude
steel production rose 3.9 percent last year to 2.42 million
tonnes, although prices for most products fell (
amm.com, Jan. 18).
The company is guarded on the
outlook for its global steel operations. "2012 was a year
characterized by challenges, and we are therefore cautious
about near-term developments," Frolov said, with steel
production levels across the companys operations expected
to be roughly flat compared with 2012, when it produced 15.9
Evraz posted a 2012 net loss of
$335 million, down from $453 million the previous year on
revenue that dipped 10.2 percent to $14.73 billion.