Ukrainian iron ore producer signs 3-yr deal with Fujian San Steeladmin
Sunday, August 13th 2006
Ukraine’s Poltava GOK mining company has signed a three-year contract to supply iron ore to China’s Fujian San Steel, Ferrexpo AG, the Swiss company that owns Poltava GOK, said in a
China accounted for 1% of Ferrexpo’s sales in 2004, rising to 12% in 2005, the release said. “The main strategic aim as reflected by the company’s annual report for 2005 is to develop long-term partnership on the basis of existing trade relations with China. The contract with
Fujian San Steel is a clear result of that strategy,” the release said.
Ferrexpo is keen to develop stable long-term trade relations with emerging markets like China. Poltava GOK’s location in Ukraine makes freight to the Chinese market competitive in price and Ferrexpo an attractive alternative to the world’s leading ore suppliers, the release
Poltava GOK is Ukraine’s biggest producer and exporter of iron ore pellets. It produces around 8 million tonnes of pellets per year, exporting more than 90% of them, and aims to increase output to 12 million tonnes by 2010.
Ferrexpo A.G. bought more than 60% of Poltava GOK at the end of last year.