Ukraine Mittal plant launches new coke battery

KIEV, Jan 19 (Reuters) - Mittal Steel Kryviy Rih, Ukraine's biggest steel mill, sadi on Friday it has launched a new battery of coke ovens that will allow it to slash coke imports in 2007.

The company, a unit of the world's largest steel producer, Mittal Steel (ISPA.AS: Quote, Profile, Research, Stock Buzz) (MT.N: Quote, Profile, Research, Stock Buzz), said an additional coke battery would probably be launched in the second half of 2007.

Mittal Steel Kryviy Rih said the plant started construction of the new coke facilities in 2004 and that two new batteries would cost about $198 million. The batteries are able to produce a total of 1.1 million tonnes of coke per year.

"The new batteries will allow the mill to receive an additional 800,000 tonnes of coke in 2007 and to cut coke purchases by more than two-thirds," the company said in a statement.

It noted imports of coke, a raw material for steelmaking, were likely to fall to 340,000 tonnes in 2007 from 963,000 tonnes in 2006.

The company said it also planned to stop two old coke batteries and replace them with new facilities within three years.

It said it planned to produce a total of 3.470 million tonnes of coke in 2007 compared with 2.696 million in 2006.

Earlier on Friday, Mittal Steel Kryviy Rih said it raised steel output by 8.8 percent to 7.6 million tonnes in 2006. It increased rolled steel output 12.3 percent to 6.9 million tonnes and pig iron production 10.5 percent to 6.8 million tonnes.

The plant, located in the central Ukrainian city of Kryviy Rih, also increased iron ore output 14.2 percent to 20.2 million tonnes.

Ukraine, the world's seventh-largest steel producer, cut liquid steel output by 0.1 percent to 27.865 million tonnes in 2006 from 27.903 million in 2005.