Metinvest Mining and Metallurgical Group announces the suspension of Pokrovsk Coal Group’s operations due to the changing situation on the frontline, electricity shortages and the deteriorating security situation, the company said in a stock exchange announcement on Tuesday.
“In connection with the suspension of Pokrovske Coal Group’s operations,Metinvest‘s management has developed a contingency plan to ensure the supply of the necessary raw materials (coal and coke) for steel production at the Group’s metallurgical assets (Kametstal and Zaporizhstal JV). The measures include the replacement of Ukrainian raw materials with coking coal from the US-based United Coal Company (part of Metinvest Group), the use of increased coal reserves, and additional supplies of coal and coke from third-party suppliers,” the statement said.
According to the press release, the full impact on the Group of the shutdown of the asset, whose production sites remain in the government-controlled territory of Ukraine, is currently being assessed.
At the same time, it is emphasized that the safety of employees is a priority for Metinvest, so the company facilitated the evacuation of Pokrovske Coal Group employees and their families. All employees who are not involved in the work stoppage process are offered paid retraining and employment at Metinvest’s assets in Zaporizhzhia, Kamianske and Kryvyi Rih. The evacuated employees are provided with financial assistance (lifting allowances, compensation for housing rent), free accommodation in hostels, and assistance for children (enrollment in kindergartens and schools).
“Pokrovskoye Coal Group is the energy heart of the Ukrainian steel industry and used to provide most of the export revenues to the Ukrainian budget. However, amid the daily deterioration of the situation, we cannot risk the safety of thousands of employees, as well as the lives of their families and children. Therefore, the suspension of the plant’s operations is a necessary step to help save lives. We believe in the victory of Ukraine, we believe in the Ukrainian Armed Forces and we are ready to resume the work of Pokrovske Coal Group and Pokrovsk itself after repelling the Russian invasion,” said Yuriy Ryzhenkov, CEO of the Group.
“Metinvest is a vertically integrated group of steel and mining companies. Its businesses are located in Ukraine, in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions, as well as in Europe and the United States.
The major shareholders of Metinvest B.V. are SCM Group (71.24%) and Smart Holding Group (23.76%), which jointly manage the company. Metinvest Holding LLC is the management company of Metinvest Group.
Metinvest Mining and Metallurgical Group, as part of Rinat Akhmetov’s Steel Front military initiative, has mastered the production of armor protection for the MIM-104 Patriot control module, which protects the Ukrainian sky from enemy attacks.
According to the group’s press release on Friday, Metinvest engineers have already mounted the first armor on the air defense system’s operational control module.
At the same time, it is noted that Metinvest continues to actively expand its line of protective products for the Ukrainian army, which increases the level of security and protects the lives of defenders and military equipment. The company has mastered the production of steel shields for the main domestic T-64 and T-72 tanks, American M1 Abrams tanks and Bradley infantry fighting vehicles, and is preparing to integrate them into various Leopard 2 modifications. The soldiers have already received more than 300 screens.
Oleksandr Myronenko, Head of Steel Production for the Ukrainian Army at Metinvest and Group Chief Operating Officer, noted that the defenders of the sky also need reliable protection.
“Since this is one of the main areas of the Steel Front initiative, in which we have extensive experience, it is not surprising that we have been entrusted with such a responsible mission. In a month and a half, we created a project from scratch and manufactured a shield for the crew of the Patriot air defense system from Metinvest’s Ukrainian armor steel according to the drawings, which guarantees protection against fragmentation damage to both the defenders and the air defense control system. Our experienced engineers also supervised the installation of the armor,” explained Myronenko.
The company clarified that Metinvest engineers have set up the production of a unique armor patch for the Patriot air defense system’s brain center, which controls the air defense system. The crew protection against shrapnel damage is made of 30KhN2MA steel, which has improved wear resistance, strength, toughness and resistance to mechanical stress.
The armor consists of nearly 200 elements – plates of armored steel up to 8 mm thick that protect the air defense control center. The total weight of the armor exceeds 2.6 tons, but this does not affect the functionality or mobility of the complex. A team of project engineers worked on the creation of the Patriot air defense system’s armor, supervising the work of turners, fitters, mechanical assemblers, and electric and gas welders.
The Patriot system is an anti-aircraft missile system. The core of the system is the AN/MPQ-53 Patriot radar. This is a multi-purpose radar with a passive phased array antenna (PFAR) operating in G- or H-bands. Patriot uses advanced air-to-air interceptor missiles and highly effective radar systems. The maximum range of airborne targets is 170 km.
Metinvest Mining and Metallurgical Group mastered the production of 20 new products in 2024, including six new products at its joint venture, Zaporizhstal, which launched six new products.
According to the group’s press release on Friday, in the face of Russia’s full-scale invasion of Ukraine, which has been going on for almost three years, Metinvest remains the country’s economic and industrial backbone. Over the decade of war, the group has managed to launch 422 new products.
This year, most new products were launched in the long products segment (12), cold-rolled coils and sheets (four), hot-rolled coils and sheets (two), and galvanized coils and semi-finished products (one each).
Kametstal and Zaporizhstal accounted for the bulk of new products. One new product was launched by Unisteel, the Group’s galvanized steel producer.
All new long products were launched at Kametstal. Thus, the plant has mastered the production of rebar for reinforced concrete structures: two new sizes and a new strength class according to the Ukrainian national standard DSTU 3760, as well as rebar according to Polish standards.
In addition, the company has launched the production of six types of wire rod made of different steel grades and in various sizes in accordance with Ukrainian, international, European and American standards. The products are used in construction, civil engineering and metal products manufacturing.
In addition, the company has mastered the production of reinforced steel profiles for supporting mine workings such as SVP33 according to Ukrainian standards. These special interchangeable products are used in the manufacture of arch support for domestic mining and metals mines. The company also started production of round rolled products made of St3ps steel with a diameter of 27 mm in accordance with Ukrainian standards, which are used in construction and civil engineering.
Zaporizhstal is the leader in new products in the cold-rolled coil and plate segment: the plant has launched four products. These include S250GD coils made in accordance with Ukrainian and European standards, which are used for further galvanizing and other coatings, and then for the manufacture of lightweight steel thin-walled structures.
The company has also mastered the production of S215G rolled steel, which is suitable for the manufacture of unwelded and welded steel profiles, sheets, main, auxiliary and decorative structural elements. It is manufactured in accordance with the German standard DIN 1623-2.
In addition, the new product is a 2.5 mm thick DC01 coil that meets European standards EN 10130 and EN 10131. The steel is ideal for use in applications where precise product geometry and ease of forming are important, while maintaining sufficient mechanical strength.
The company has started production of 2.1-2.5 mm thick plates cut from hot-rolled coils in a wide range of grades, a versatile material for the production of various structural elements and technical products subject to cold forming.
All cold-rolled products are intended for the construction industry, machine building and metal products segment.
In the hot-rolled coils and sheets segment, Zaporizhstal launched production of two types of rolled products: coils and sheets of S355JR/S355J2 grades with a thickness of 2.75-2.79 mm according to European standards, as well as a newly designed sheet with a size of 5.0×1500×6000 mm made of 09G2/09G2S steel according to Ukrainian technical standards. These products are in demand in the construction and machine-building industries. In particular, the first of these products is used in the production of electric-welded pipes and profiles, and the second is used to manufacture structural elements for freight and passenger railcars.
In the galvanized coils and semi-finished products segment, Unisteel has mastered the production of S250GD-S280GD rolled products from Zaporizhstal coils – these steel grades are used in construction, namely in structures that require a combination of strength and corrosion resistance.
For its part, Kametstal has launched the production of continuously cast square billets that meet higher quality standards both in terms of chemical composition and physical structure after crystallization. These semi-finished products are used to make long and structural shapes for critical applications.
“Metinvest is a vertically integrated group of steel and mining companies. The Group’s enterprises are located primarily in Donetsk, Luhansk, Zaporizhzhia and Dnipropetrovs’k regions. The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it. Metinvest Holding LLC is the management company of Metinvest Group.
Foreign investors are not yet ready to finance projects in Ukraine due to weak demand for steel products and high risks.
Yuriy Ryzhenkov, CEO of Metinvest Group, said this in an interview with Bloomberg Television when asked about the impact of the war on investment in Ukraine, the need for peace guarantees and the company’s investment opportunities in neighboring countries.
“The situation in Ukraine remains quite complicated, and we do not see any slowdown in the war. On the contrary, the hostilities have become even more intense over the past six months. Consequently, the investment climate is still not favorable for investments in Ukraine. However, as an international player, especially in European markets, Metinvest has decided to launch a project to build a green steel plant in Italy. This plant will be a pilot project for us and our partner Danieli to restore the Ukrainian steel industry after the war is finally over,” the CEO said.
According to him, freezing the war is not enough, as Ukraine has a negative experience with the Minsk agreements. Therefore, the country now needs reliable security guarantees, and this is the only way to attract large investments, including in green steel. Before that, it is unlikely that significant investments will come to the country.
Regarding the project in Italy, the company’s CEO said that its cost is estimated at EUR 2.5 billion and will be financed through equity investments, as well as mainly with the support of loans from European financial institutions, including state and public funds.
“If we are talking about Ukraine, we will need the same amount of investment to change the Ukrainian steel industry. That is why I emphasize that without the final end of the war and reliable security guarantees, the implementation of these plans in the near future looks unlikely. It is hard to imagine that investors would agree to invest substantial funds in the modernization of the Ukrainian steel industry in the current environment,” Ryzhenkov explained.
He reiterated the need for at least security guarantees: “I’m not sure what kind of peace agreements should be signed, but security guarantees should come from our allies and partners – from the United States and Europe. And they must be strong enough to convince investors that this is a real end to the war and that Russia will not attack again in a few months or years.”
The CEO also noted that investors are simply not investing at the moment: investments supported by European and other governments are being implemented, as well as state investments. However, private investments have been suspended, and investors are waiting for the situation to be clarified.
At the same time, the CEO explained, “we are open to any projects that can provide synergy with our resource base in Ukraine. We are considering the possibility of acquiring and modernizing facilities that do not yet belong to the category of decarbonized steel, but have the potential to become so. There are several facilities in neighboring countries that meet this criterion, but I will not name them, as this may affect the negotiations.”
In addition, the company is studying distressed steel assets with decarbonization potential that can be restored and brought back into operation – these assets are mainly located in Southern and Eastern Europe, which is the region of the group’s operations, and that is why they attract Metinvest’s attention.
Answering a question about the situation on the steel markets, the CEO stated that demand in the steel industry remains weak, especially in Europe.
“Steel companies across Europe are facing difficulties. However, steel remains the most versatile material in the world, and the industry is highly cyclical. So we are currently in the downward stage of the cycle, but we know that a recovery is inevitable in the future. That is why we are ready to invest today to take advantage of future growth,” Ryzhenkov summarized.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
Metinvest Mining and Metallurgical Group is ready to invest in Europe and expand its presence in the market, including steel production, and is currently in the process of mergers and acquisitions of some European steel assets, said Alexander Vodovez, Chief Executive Officer of the Group, at the European Business Summit in Brussels.
“We are negotiating with several European companies to come to Ukraine. We are currently in the process of merging and acquiring some European steel assets, as we have a huge resource base and want to use it properly,” said the top manager.
According to the head of Metinvest’s CEO’s office, before the war, the group employed about 120,000 people and accounted for about 5% of Ukraine’s GDP. But with the start of the full-scale invasion, the company lost almost 50% of its enterprises, particularly in Mariupol and Avdiivka. Today, Metinvest employs about 60,000 people in Ukraine, Italy, the United States, Bulgaria and the United Kingdom. About 9,000 of the company’s employees serve in the Ukrainian Armed Forces, and about 1,000 employees have been killed. The group’s enterprises operate under the threat of shelling, with some facilities located just 10 km from the frontline.
Vodoviz emphasized the importance of entering the EU market, especially as Ukraine fights Russian aggression.
“Ukraine has the largest resource base on the European continent. And we can offer Europe access to these resources. In return, we want access to European technologies and the financial system to implement projects both in Ukraine and in the EU. But we do not need free money – we are ready to compete. We are ready to be part of the economic society of Europe and want this accession process to be completed as soon as possible,” stated the head of Metinvest’s CEO’s office.
At the same time, he clarified that the main obstacle for Ukraine on its way to European integration is the war: “We cannot simply turn a blind eye to the war, but our government has a homework assignment – to go through all the procedures for joining the European Union: monitoring, enforcement of laws, etc.” The top manager emphasized that Ukraine’s European integration will help ensure the strategic autonomy of the European steel industry from Russia.
Metinvest Group’s Central, Ingulets and Northern Mining and Processing Plants (MPPs), which were transformed into United Mining and Processing Plants (UMPP) in January-September 2024, paid UAH 4.7 billion in taxes, up twice year-on-year.
According to the company’s press release on Thursday, in the same period last year, the GOKs paid UAH 2.3 billion.
Igor Tonev, CEO of the GOKs, noted that despite the wartime situation, Metinvest’s GOKs remain not only an economic support for the region but also the largest employer.
“We continue to implement a veteran policy for defenders who are gradually returning to their jobs from the front, retrain our specialists and train new team members, adapt and create the most efficient model of mining enterprises today. In addition, mining and processing plants systematically support Kryvyi Rih and communities by implementing joint humanitarian, educational and infrastructure projects,” Tonev emphasized.
As reported earlier, Metinvest is implementing a new model for the operation of Kryvyi Rih mining enterprises, uniting the mining and processing plants in Kryvyi Rih under a single management.
“Given the current challenges, with no objective way to bring the workload of the GOKs to the optimal level, we are looking for the effect of combining their capabilities and business processes. To this end, the company sees its GOKs not as separate facilities with separate teams, but as one large production site and one large team, and tries to use the advantages of each GOK in a single technological chain. The creation of a single administrative and management center, so to speak, a consolidated GOK, will significantly simplify, speed up and increase the efficiency of these processes, as well as contribute to the creation of new synergies between the enterprises,” explained Yuriy Ryzhenkov, CEO of Metinvest, earlier.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the United States. Its main shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
