BUDAPEST, Aug. 29 - Hungarian steel group Dunaferr will increase its rolled steel production from an annual 1.5 million tons to 2.5 million tons within three years, due to growth in raw material supply from Ukrainian parent company Donbass, according to group chairman Sergei Taruta.

Donbass inaugurated the continuous casting machine of its Alchevsk metallurgical mill for $400 million last week. This machine will start supplying Dunaferr with flat slabs in November and increase the amount of shipped products to Dunaferr for processing by 400,000 tons in 2006 and by a total of 1 million tons through 2008.