Severstal Slashes Steel Output as Demands Falls

MOSCOW, Oct 10 (Reuters) - Russia's biggest steelmaker, Severstal, has announced sweeping output cuts for October as global economic conditions hit demand for steel products. The company said on Friday it would cut crude steel output at its Cherepovets plant in Russia by approximately 25 percent, and by 30 percent at its U.S. and Italian plants.

"We consider these measures to be prudent management in a time of rapidly changing market conditions," Sergei Kuznetsov, Severstal's CFO, said in a statement.

"We are maintaining close discussions with our customers to support their near-term requirements. Likewise, the company is communicating with suppliers so that we can optimise the supply chain and keep all stakeholders informed of production levels."

Severstal is also reviewing its 2008 full-year production plans, it said. Severstal said last month it planned to raise its crude steel output by 31 percent from last year to 23 million tonnes.

(Reporting by Aleksandras Budrys, editing by Will Waterman) Keywords: SEVERSTAL RUSSIA/OUTPUT ra COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved.

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