Business news from Ukraine

“Zaporizhstal” increased rolled steel output by 57% and steel production by 65%

7 January , 2024  

In 2023, Zaporizhzhia-based Zaporizhstal Iron and Steel Works increased its rolled steel output by 57.2% compared to 2022, to 2 million 54.7 thousand tons.

According to the company’s information on Friday, steel production for the year increased by 65.4% to 2 million 466.9 thousand tons, and pig iron production by 35.3% to 2 million 718.9 thousand tons.

In 2023, the plant operated at an average of 70% of its capacity.

In December, Zaporizhstal produced 265.5 thousand tons of iron, 228.6 thousand tons of steel, and shipped 206.5 thousand tons of rolled products, compared to 262.7 thousand tons of iron, 240.8 thousand tons of steel, and 195.6 thousand tons of rolled products in the previous month, and 141.9 thousand tons of iron, 70.7 thousand tons of steel, and 57.7 thousand tons of rolled products in December 2022.

“The increase in production in December 2023 compared to December 2022 is due to the removal of blast furnace No. 2 from hot mothballing and the establishment of three blast furnaces,” the press release explains.

As noted, enemy shelling and destruction, interruptions in the supply of raw materials and energy, and disruption of logistics routes for the export of finished products due to the blockade of seaports in 2023 led to a reduction in steel and rolled products production at Zaporizhstal compared to pre-war levels. However, compared to 2022, the steelmaker increased production of steel products by increasing capacity utilization, finding new logistics routes for raw materials and sales, and expanding its product portfolio.

“The implemented anti-crisis solutions allowed us to stabilize the production process and refocus on more efficient work in the ever-changing wartime environment, maintain production and retain our team. In 2024, we plan to maintain production volumes, and, given the favorable conditions on foreign markets and demand for rolled steel in the domestic market, to increase production capacity utilization,” said Roman Slobodianiuk, CEO of Zaporizhstal, as quoted by the press service.

As reported, in 2022, Zaporizhstal reduced its rolled steel output by 60.4% compared to 2021, to 1 million 304.3 thousand tons, steel by 61.7%, to 1 million 491.3 thousand tons, and pig iron by 54.3%, to 2 million 9.9 thousand tons.

“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries of the world.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).

Metinvest Holding LLC is the management company of Metinvest Group.

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