OREANDA-NEWS. May 12, 2010. In April 2010, Khartsyzsk Tube Works <HRTR UK U/R> produced more than 40ktonnes of pipe goods, which is by one third more than has been its output in the entire 1Q2010. The production level reached by the Company in April corresponds to 85% of its capacity utilization. The factors underlying such a significant growth in output have been disclosed neither by the Company management not by its owner (the Metinvest Holding).

Millennium Capital: HRTR had previously been on the verge of stoppage of its operations for lack of new contracts following the completion of the last year’s contract to supply pipes for Central Asia – China gas pipeline. Taking into account the fact that the Company’s products are not needed in Ukraine in those volumes, Millennium Capital believes one can make a conclusion in this case that the output increase has been due to a new export contract entered into by the Company recently. According to unofficial information available, this pipe supply is to be exported to Europe, particularly to France, to extend the gas pipeline between Spain and France. Needless to say, this news is undoubtedly POSITIVE for the Company.