Ormet starts sixth line, sees full capacity in 2007

By Carole Vaporean

NEW YORK, Dec 19 (Reuters) - Ormet Corp. ORMT.PK, a closely held U.S. aluminum producer based in Hannibal, Ohio, restarted the last of six potlines at its smelter on Nov. 28, and anticipates a full pot count in the line by the end of 2007, Chief Executive Officer Mike Tanchuk said on Wednesday.

The line restart is currently 65 percent complete. At full capacity Hannibal produces 260,000 tonnes of aluminum a year.

Tanchuk said work continues on bringing the other potlines up to full capacity as well. November's average count came to 768 operating pots compared with 1,032 total pots.

Tanchuk joined James Riley, chief financial officer, on a conference call and told analysts Ormet lost $19.6 million on revenues of $130.5 million in the third quarter ending September 30. Riley said 2006 comparisons were not meaningful.

Ormet's smelter was idled in 2005 following a bankruptcy filing and a prolonged labor strike. Last December, under new management, the smelter restarted its first potline and has since refocused operations and gradually restarted its lines.

Asked by an analyst whether the company is gearing itself up to be sold, company executives said Ormet was focused on getting the Hannibal plant fully operational and reducing costs.

"When that is in place, the board will make a decision. What we're saying is that now is not the time," said Riley.

Riley reported third quarter aluminum sow sales at $101.7 million or 78 percent of total sales, with billet sales of $19.1 million or 15 percent. The rest of the quarterly revenues came from selling bauxite.