Moly supply disruption batters Metal-Techadmin
Metal-Tech slumped today after the speciality metal and metal-based chemicals firm said its Uzbek subsidiary is encountering significant disruption of its supply of molybdenum raw material.
Uzmetal Technology, jointly owned with two Uzbekistan government owned companies, blamed mineralogical problems of a government owned mine and a contractual dispute between Uzmetal and its molybdenum supplier.
The company said it is actively seeking to resolve the dispute and in parallel is seeking an alternative supply, but an “extended period of disruption is likely to result in a significant impact on Uzmetal production.”
“In the event that this problem will not be rectified the company’s overall sales and profits for 2006 may be 10%-15% lower than market expectations,” it added.
Despite such disruption, Metal-Tech said it remains confident that as a result of its global supply network and production plants, its long term growth prospects will not be affected beyond 2006.
In addition, the firm announced that its fully owned Swiss unit Metek Metal Technology is expanding production into the Czech Republic with the formation of a new subsidiary in which it has a majority shareholding of 80%.
The new company has been created for the purpose of producing tungsten and molybdenum from the recycling of waste and spent catalysts sourced from the oil refineries industry.
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