The mining and metallurgical group Metinvest plans to expand its product portfolio in terms of DR-rolled products (iron ore direct reduction DR-rolled products – IF-U) for the production of “green” steel and premium raw materials for pig iron production.
According to a press release, as part of this large-scale program to increase DR-pellet production, which Metinvest is launching, the construction of a flotation and finishing complex for the production of concentrate to ensure the quality characteristics of raw materials for DR pellets and the reconstruction of the existing LURGI 552-A pellet production line are expected.
It is reported that on December 1 of this year, Metinvest Sichstal, a group company that implements its strategic investment projects, signed an agreement with the leading Austrian company Primetals Technologies for the development of basic engineering for the reconstruction of the LURGI 552-A production line. This will be the first stage of the roasting machine’s modernization, which is planned to be completed by the end of 2026.
It is noted that the global trend towards “green” metallurgy, the development of steel production in electric furnaces, and changes in consumption in China and the EU are driving demand for high-quality iron ore raw materials (IORM). To strengthen its competitiveness in the global IRR markets, Metinvest intends to improve the quality of the concentrate used in its production.
“The concentrate from Northern GOK has good potential for quality improvement. After enrichment using flotation technology, we will be able to obtain a product with an iron content of at least 70% and a minimum proportion of impurities – silicon and aluminum oxides of no more than 2%. This opens up the possibility of producing high-quality pellets,” said Sergey Pavlish, Deputy Director of Programs at Metinvest Sichstal.
In order to enter the high-margin DR pellet market, along with the enrichment of ordinary concentrate, it is planned to reconstruct the technological line for the production of pellets for the LURGI 552-A roasting machine. This will enable the manufacture of products with improved characteristics that meet consumer requirements and market trends.
As a result of the implementation of the program, which will consist of these two projects, it is planned to produce about 4 million tons/year of DR pellets at the Northern GOK. The possibility of producing BF HQ class pellets is also envisaged. (Blast Furnace High Quality refers to high-quality iron ore pellets specially designed for use in blast furnace (BF) production with a high iron content and low impurity content, making them an ideal raw material for iron (DR) production, capable of ensuring a more efficient and environmentally friendly process – IF-U).
“The design stage will include the use of modern energy-saving technologies. And the new process control system will allow the line to be reconfigured for the production of any of these types of pellets,” explains project manager Andriy Panchenko, whose words are quoted in the report.
Metinvest Sichstal LLC (MSS) is a company within the Metinvest Group for the implementation of highly complex strategic investment projects, established in 2019.
MSS is one of the largest project organizations in Ukraine, capable of implementing large projects, from conceptual design to commissioning. The company’s goal is to implement key projects in the technological strategy of Metinvest Group companies. MCC provides an integrated process from investment idea, engineering, and design to procurement, construction, and commissioning.
Metinvest B.V. (Netherlands) owns a 100% stake in Metinvest Sichstal LLC.
The LLC’s authorized capital is UAH 30.405 million.
Metinvest Sichstal LLC is part of the Metinvest Group, whose main shareholders are System Capital Management (SCM, Donetsk) (71.24%) and the Smart Holding group of companies (23.76%). The managing company of the Metinvest Group is Metinvest Holding LLC.
Engineering and construction company Rauta will launch sandwich panels, ventilated facades, and roofing materials made from “green” steel on the Ukrainian market next year, Rauta Director Andriy Ozeychuk announced during a panel discussion at the 5th Ukrainian Construction Congress in Kyiv on Friday.
“In 2026, Rauta will launch sandwich panels, ventilated facades, and roofing materials made from ‘green’ steel, which is produced using hydrogen, electricity, and biogas instead of fossil fuels. The residual product of this production process is not carbon dioxide, but water,” he said, citing an example of the company’s implementation of ESG principles (Environmental, Social, Governance – environmental, social and corporate responsibility).
According to him, the use of “green” steel, in particular, will significantly reduce the amount of embodied carbon and increase the number of points when certifying a building according to the LEED and BREEAM environmental systems.
Rauta systematically implements key ESG principles in its activities, because a transparent corporate culture and reputation are important to the company’s customers. “The projects implemented by our company always incorporate solutions that comply with ESG principles. For example, the Energy series’ airtight technology and sandwich panels reduce operational carbon and increase the sustainability of the facility,” says Ozeychuk.
In 2022, Rauta was the first in Ukraine to introduce Environmental Product Declarations (EPDs) for building envelopes. The company is also actively involved in social projects: it partners with architectural competitions, provides grants for training young architects at InLab and Plus Minus schools, has set up a training stand in a specialized energy conservation auditorium at KNUSA, and has launched an educational project on sustainable design.
The expert noted that the advantage of steel solutions for the customer is the speed of project implementation and the ability to create large-span spaces. If necessary, steel frames can be relatively easily relocated or 100% recycled as scrap metal, which significantly increases their value for the customer compared to reinforced concrete solutions.
Ozeychuk stated that European construction customers implementing projects in Ukraine are not only willing to pay for steel solutions, but also often insist on the use of more environmentally friendly and energy-efficient materials.
“This is due to a more conscious attitude towards ecology and construction experience in the EU, where the European Energy Performance of Buildings Directive (EPBD) is in force, which sets requirements for improving the energy efficiency of existing and new buildings, which directly affects the criteria for selecting materials. Unfortunately, Ukrainian construction customers mainly look at low prices rather than environmental or quality characteristics,” he said.
According to his forecast, if Ukraine implements the European Directive, the demand for materials with better thermal and environmental characteristics will increase. “This will increase competition between Ukrainian and European manufacturers and force the former to invest in modern production processes to improve the environmental friendliness and energy efficiency of their products,” Ozeychuk believes.
Rauta is a leader in the Ukrainian steel construction market and a member of the European Construction Industry Association. The company provides design, manufacturing, and installation solutions in accordance with current EU standards. The company is licensed to perform construction work with medium and significant consequences (CC2, CC3). According to the Unified State Register, Andriy Ozeychuk owns 100% of the company’s authorized capital.
