OneSteel Ltd
(ASX:OST) says it has been unable to recommence operations at the Whyalla blast furnace following stoppages over the weekend.
The company says the difficulty lies in problems with some connections.
These connections it says are required to commence stable smelting process conditions and as a result the company expects it will take around 4 weeks from now to return the blast furnace to normal operating levels.
The company says due to EAF capacity and the company’s strong broad-based inventory position, OneSteel expects minimal impact on its ability to meet expected customer demand across the majority of its products and customers.
Additionally, the company says some product will be imported to supplement product where required.At this time OneSteel says it does not believe the interruption will have a material impact on its earnings for the second half of this financial year.
OneSteel’s profit for the 12 months to June 30, 2009 came to $229.5 million.
