The MAIR Industrial Group, Russia’s largest processor of ferrous scrap, reduced its scrap metal shipments by 6% to 1.6 million tonnes in the first nine months of 2006, according to a report from Promstroibank which is managing the group’s second bond issue.
The group, whose turnover reached 13.3 billion roubles over the nine-month period, saw exports drop to 65% of total sales from 70% for 2005 as a whole. MAIR now has a 30% share of Russia’s professional scrap collection market, and a 4% share of the world market.
The group’s steel plants increased their sales over the same nine months. Its Verkhnesinyachikhinsky facility raised sales from 775 million roubles in January-September 2005 to 798 million roubles in the same period last year. Pig iron production increased 18.9% to 109 000 tonnes. Steel billets and iron powders producer Staks recorded a 1.6% increase in sales to 903 million roubles. It produced 85 000 tonnes of steel billets in the nine-month period compared to 115 300 tonnes throughout the whole of 2005. Meanwhile, the Arzil pipeline reinforcements plant boosted year-on-year sales by 20% to 210 million roubles. Group sales of paints and varnishes edged up from 982 million roubles in January-September 2005 to 986 million roubles during the corresponding period this year.
The group’s units have invested US$ 14 million in fixed assets this year. Some of the money has been ploughed into the development of scrap processing plants in Poland and into the completion of the ladle furnace project at Staks, while around US$ 5 million was invested in information technology.
