STAYING THE COURSE

Strengthening of co-operation ties between Ukrainian enterprises, augmentation of manufacturing output bound for domestic market, and increasing utilization of the existing productive capacities (to ensure profitability of manufacturing performance) rank


STAYING THE COURSE

STAYING THE COURSE

Nikolay ZAKARYAN, first deputy Director General with
UkrOgneupor Association

Strengthening of co-operation ties between Ukrainian
enterprises, augmentation of manufacturing output bound for domestic market, and
increasing utilization of the existing productive capacities (to ensure profitability of
manufacturing performance) rank among the major tasks to be accomplished by Ukraine’s
mining and metallurgical complex.

In 2000, refractory industry featured quite stable
manufacturing performance and managed to fully satisfy refractory demands of Ukraine’s
mining and metallurgical complex, and other industrial sectors of Ukrainian economy.

Experts believe that economic experiment launched in June
1999 positively affected both financial situation and operating activity of mining and
metal-making enterprises. Eight refractory plants embraced by the experiment contribute
85% to the total manufacturing output of refractory materials.

Commercial refractory output went up by 140.4% in existing
prices. The volume of produced refractory materials corresponded to the volume of
refractories sold. Barter transactions accounted for meager 33.5% of the total sale,
compared to 63.3% reported before the experiment. Operating profit witnessed a twofold
augmentation and totaled UAH 90 million. Profitability of refractory production reached
the level of 15.4%. Deductions to budget and Pension Fund, and payments for consumed gas
and electric power grew 1.6 times.

In 2000, refractory output amounted to 886.7 thousand
tonnes thus exceeding the figures reported in 1999 by 171 thousand tonnes (124%).
Extraction of refractory clay reached the high of 207 thousand tonnes, which is 12% more
than in 1999, while extraction of quartzite totaled 130 thousand tonnes, which added 29.3%
to the 1999’s level. Besides, refractory plants manage to use their own raw materials to
produce chamotte and silica refractory materials.

Along with this, the assortment of produced refractories
will obviously undergo qualitative changes. A number of enterprises introduced production
of new refractory materials to substitute their imports from abroad:

- OJSC ZaporozhOgneupor launched production of
periclasecarbonaceous products for slag belts and ladle bottoms; periclase refractory
materials P89, P90, P91; periclase-graphite steel-smelting nozzles, mullite-graphite
dipping nozzles and plugs; SHP and CMZ mixtures etc.;

- OJSC Chasov-Yarsk Refractory Works started to
produce forsterhyte products, periclase non-roasting stoppers for casting ladles; plates
for slide gates of casting ladles covered with steel shell.

Krasnoarmeysk Silica Factory revised the outdated
technology for production of light-weight silica refractories, which improved their
apparent density to 0.8-1.0 g/cm3 and increased their mechanical strength up to 8 MPa.
Direct introduction of mineralizing ferrous additives to silica charge significantly
improved the quality of such products and stabilized their properties.

Krasnogorovsky and Krasnoarmeysk Refractory Plants boosted
manufacturing output of non-roasting silica ladles, the durability of which is 2-3 times
as high as that of aluminosilicate refractory materials.

Besides, to increase output of quartzite nozzles for
continuous casters and improve their composition, Krasnogorovsky Refractory Plant
modernized its department producing such items and launched production of
corundum-graphite dipping nozzles.

Velikoanadolsky Refractory Plant became the first
enterprise in Ukraine to produce highly efficient refractory concrete, mixtures,
air-placed concrete and gun-concreted products, utilized in chemical heating ladles, argon
blowing of casting ladles, as well as in main spouts of blast furnaces, iron-ore pellet
furnaces, and non-ferrous melting furnaces.

To meet the demands of metallurgical industry, CJSC Mineral
will soon construct the workshop able to produce 50 thousand tonnes of ground clay per
year.

Kondratyevsky Refractory Plant introduced and improved new
technology for production of compound gate plates with millite-corundum bottom and
corundum insert containing modified additives. Testing of such plates confirmed their
durability during multiple ladle casting of steel. However, in 1999-2000, KrivorozhStal
abruptly curtailed the utilization of such plates, owing to increased imports of similar
products from Germany. Quality of Ukrainian-made refractory materials insignificantly lags
behind the quality of imported refractories although their price is two times as low as
the price for their foreign analogues. Such situation put severe obstacles for further
development of refractory industry. For domestic refractories to meet the latest quality
standards, Ukrainian metallurgical enterprises should actively participate in their
development. Such approach seems to be the only way out to support domestic producers,
which currently strengthen and modernize their productive capacities. To improve the
properties of their products, refractory plants are eager to prolong co-operation with
metallurgical enterprises.

Ukrainian Scientific Research Institute of Refractory
Materials named after A.S. Berezhnoy accomplishes all development activity aimed at
introduction of new refractory materials and modern technologies.

However, lack of centralized financing and insufficient
funds considerably shrink the potential of the Institute even despite the fact that
according to our estimates, modernized refractory production would curtail Ukrainian
imports of foreign refractories by 30%.

Taking into account possible volumes of steel production,
refractory output in 2001 will supposedly amount to 900 thousand tonnes. To achieve the
scheduled output of refractory materials in 2001, refractory plants should rationally use
granted privileges, which could foster existing positive trends and improve the whole
situation in the industry.

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