The mining and metallurgical group Metinvest is seeking a new investor to finance a EUR3 billion ($3.4 billion) steel plant in Italy, as the Ukrainian group seeks to reduce its liabilities, according to Bloomberg.
According to the agency, the group is seeking an additional partner for the project at the site of a former steel mill in Piombino on the Tuscan coast. The company wants to strengthen its financing “in light of war-related risks, given Metinvest’s significant operational presence in Ukraine.”
However, as noted, some potential lenders have become more cautious due to heightened geopolitical risks, including the recent conflict in the Middle East.
“As for the debt capital structure, we have good visibility on it, and we are continuing our dialogue with financial institutions to finalize this matter as well,” a Metinvest representative told the agency.
It is worth noting that the Italian government has designated this initiative as a “national strategic project,” and Metinvest Adria—a joint venture (JV) established last year with the Danieli Group to build this state-of-the-art facility—refers to the project as “the revival of steel in Italy.” It is expected to produce 2.7 million metric tons of low-carbon steel per year and create 1,100 jobs in the region.
According to the initial plan, financing was to consist of debt, government grants, and contributions from the JV partners to the share capital. Metinvest agreed to contribute more than EUR500 million, or 75% of the total equity, but is now seeking to reduce this amount to less than EUR300 million.
Bloomberg adds that Metinvest reported receiving “significant support from all stakeholders,” particularly from the Italian government, which has already approved grants and loan guarantees and allocated funds for the construction of a new berth at the Port of Piombino.
“Metinvest’s financial position deteriorated after the company had to use its cash reserves in April to redeem $428 million in bonds. Some of the company’s assets in Ukraine were lost or damaged as a result of the Russian invasion. Operations were also negatively impacted by high energy costs and a labor shortage,” the report states.
In addition, the report notes that S&P Global Ratings upgraded Metinvest’s credit rating this month following the bond repayment, but maintained a “negative” outlook on the business, emphasizing the need to build up cash reserves. According to S&P, Metinvest’s free cash flow stood at $150 million as of early May.
Metinvest is exploring the possibility of raising long-term financing and recently held meetings with investors to discuss the pricing and structure of a potential bond issuance. Like most Ukrainian companies, Metinvest has not tapped the bond market since the start of the full-scale invasion in 2022. Despite this, the group has managed to meet its financial obligations and reduce its debt burden, according to a Bloomberg report.
Metinvest is a vertically integrated group consisting of mining and metallurgical enterprises. Its facilities are located in Ukraine—in the Donetsk, Luhansk, Zaporizhzhia, and Dnipropetrovsk regions—as well as in the European Union, the United Kingdom, and the United States. The holding company’s main shareholders are the SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
The mining and metallurgical group Metinvest has signed a new seven-year loan agreement worth 20 million euros with the Black Sea Trade and Development Bank (BSTDB), strengthening its long-standing partnership with the international financial institution.
According to a press release, the agreement was signed by Oleksiy Sobolev, Ukraine’s Minister of Economy, Environment, and Agriculture, during the Ukraine Recovery Conference (URC 2026) in Gdańsk, Poland.
As noted, the financing will help strengthen the group’s energy resilience in Ukraine, specifically by installing the first solar power plants with a total capacity of 37 MW, as well as supporting critical energy infrastructure. Additionally, this will help reduce Metinvest’s carbon footprint.
The new agreement continues Metinvest’s cooperation with the China-Belarus Trade and Investment Bank (CBTIB), which began with investment loans in 2020 and working capital financing in 2024.
Metinvest CEO Yuriy Ryzhenkov emphasized that the partnership with the Black Sea Trade and Development Bank (BSTDB) reaffirms confidence in Metinvest’s long-term strategy: “This financing will help us modernize our production facilities, invest in renewable energy, and strengthen Ukraine’s industrial potential.”
For his part, CBTR President Dr. Serhat Keksal noted that the long-standing partnership with Metinvest reflects CBTR’s commitment to supporting sustainable Ukrainian companies.
“This financing will help strengthen industrial production, enhance energy resilience, and support Ukraine’s economic recovery. We also highly value our partnership with the Japan Bank for International Cooperation (JBIC), which reaffirms our shared commitment to supporting Ukraine’s recovery and sustainable development,” concluded the CEBT Chairman.
Metinvest is a vertically integrated group consisting of mining and metallurgical enterprises. Its facilities are located in Ukraine—in the Donetsk, Luhansk, Zaporizhzhia, and Dnipropetrovsk regions—as well as in the European Union, the United Kingdom, and the United States. The holding’s main shareholders are the SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
The Northern Mining and Processing Plant (Northern GZK, Kryvyi Rih, Dnipropetrovsk Oblast), part of the Metinvest Group, has invested 3.5 million UAH in the modernization of pumping equipment, which is expected to pay for itself within a year.
According to the company, as part of its 2025 investment program, a new pump unit was installed at Northern GOK’s Pershotravnevy open-pit mine. Its operation over the past nine months has already yielded significant economic benefits through energy savings.
It is noted that in open-pit iron ore mining operations, pumping equipment is used to remove groundwater from the bottom of the quarry, which prevents flooding, strengthens the slope walls, and ensures safe mining operations. A pumping station is located at the lowest point of the Pershotravnevy Quarry, and its equipment performs these functions.
Last year, due to operational needs to deepen the quarry to a lower level, it became necessary to replace the pumping equipment with a more powerful system. At that time, the station was operating a CNS 300-560 pump. According to its technical specifications, its capacity was 300 cubic meters of water per hour, and it could deliver water to a head of 560 meters, with subsequent transportation to the technical water supply and slurry management facility.
To increase the technical capabilities of the pumping equipment for dewatering the lower ore-bearing horizons, an investment project was approved to purchase a new, more powerful pump. Last fall, the NSSH 315-630 unit was put into operation.
The new pump’s productivity is higher due to its increased flow capacity—up to 315 cubic meters of water per hour—and it is capable of pumping water to the upper horizons at a head of up to 630 m. At the same time, the new equipment’s energy consumption is equal to that of the previous unit. Both units are equipped with 800 kW motors.
“Last year, the company invested 3.5 million UAH in the modernization of the pumping equipment at the Pershotravnevy Quarry. Current energy-saving estimates show that over a full year of operation of the NSSH 315-630 pump, we will achieve an economic benefit that will fully recoup the investment and continue to generate a profit for the plant,” explained Maksym Danilov, head of the Pershotravnevy Quarry at Pivnich GZK.
Pivnichny GZK is part of the Metinvest Group, whose main shareholders are PJSC “System Capital Management” (SCM, Donetsk) (71.24%) and the “Smart-Holding” group of companies (23.76%). The management company of the Metinvest Group is Metinvest Holding LLC.
The Zaporizhzhia Metallurgical Plant “Zaporizhstal” is carrying out systematic work to maintain and modernize its crane system and lifting equipment
According to the company’s press release, the reliable operation of this equipment is a key component of ensuring the continuity of production processes, employee safety, and the creation of comfortable working conditions.
It is noted that the plant operates 230 lifting mechanisms and 447 cranes. All equipment undergoes regular maintenance, repairs, and modernization with the implementation of modern solutions in the field of occupational health and safety.
“Today, the company is carrying out comprehensive work to maintain the crane fleet in good working order—from regular technical audits and timely detection of malfunctions to staff training and the implementation of modern safety standards. This approach ensures uninterrupted production operations and creates safer working conditions for our employees,” noted Kirill Gavrilyuk, Director of Occupational Health and Industrial Safety at Zaporizhstal.
It is also reported that in 2025, the company carried out a series of major overhauls of crane equipment with a total cost of over 13.6 million UAH. In particular, a major overhaul of the ore-handling gantry crane was carried out in the blast furnace shop. As part of the work, the crane and trolley travel mechanisms, as well as the grab lifting and closing mechanisms, were updated; the trolley rails were replaced; and the steel structures, electrical equipment, and safety devices were repaired.
In the slab mill section of the hot rolling shop, major repairs were performed on two grab cranes. The work involved repairing the main steel structures, the main hoisting mechanisms, control systems, electric motors, and electrical equipment.
In addition, the company allocated approximately UAH 170 million to maintain the equipment in good working order and perform routine repairs on the crane equipment.
In 2026, Zaporizhstal continues the systematic modernization of its crane fleet. Since the beginning of the year, 14 new industrial air conditioners have been installed on overhead and crane systems in the hot rolling shop, cold rolling shop, blast furnace shop, and open-hearth shop. To improve working conditions for crane operators, the company also purchased and installed modern anti-vibration seats, which help reduce the impact of vibration and prevent the development of occupational diseases.
In total, nearly 90 million UAH is allocated for maintenance and repairs of crane facilities in 2026.
Among the largest projects of the year is the overhaul of one of the gantry cranes in the hot rolling shop, with an investment of over 7 million UAH. The project involves a comprehensive upgrade of mechanical and electrical equipment, modernization of control systems, replacement of cables and wiring, and the completion of a full range of commissioning works.
In all structural units of the plant, material-handling cranes are equipped with audible alarms to warn employees of moving machinery. In the hot rolling shop, four cranes have additionally been fitted with a visual lighting system for the areas where loading and unloading operations take place. In the railway transport department, two cranes are equipped with an automated signaling system that prevents the mechanisms from starting without a warning signal. The combination of audible signals and visual indicators helps employees better navigate the crane operating area and significantly reduces production risks during loading and unloading operations.
Zaporizhstal is one of Ukraine’s largest industrial enterprises, whose products are in high demand among consumers both in the domestic market and in many countries around the world.
Zaporizhstal is a joint venture of the Metinvest Group, whose main shareholders are PJSC System Capital Management (71.24%) and Smart Steel Limited (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
crane fleet, METINVEST, MODERNIZATION, occupational safety, ZAPORIZHSTAL
New EU restrictions on steel imports, set to take effect on July 1 of this year, could destroy Ukraine’s mining and metallurgical complex (MMC) and deal a significant blow to the budget of a country defending itself against Russia, Metinvest Group CEO Yuriy Ryzhenkov said in an interview with The Guardian.
According to him, the EU’s new quota system could “kill Ukraine’s steel industry.”
He noted that the EU introduced protectionist measures due to a prolonged global steel surplus caused by China. The EU has halved the quotas for steel that can enter the bloc tariff-free and doubled the tariff to a prohibitive 50% on all imports exceeding the limit allocated to each country. This EU decision has caused concern among trading partners trying to secure a sufficiently large share of the quota for their own steel industries, particularly in the UK, where the industry has warned of an “existential threat” if it does not receive sufficient access to its largest export market.
For Ukraine, the economic threat from its military ally is exacerbated by the war, which has cut off some of its previous alternative markets and pushed the country’s steel companies toward closer integration with Europe. They have also faced additional costs due to constant attacks on infrastructure since the start of full-scale war in February 2022.
“In our view, this is an unfair approach. Ukraine does not pose a significant threat to the EU steel industry—supplies are small. At the same time, destroying one of the country’s functioning industries does not seem reasonable; we see no leniency toward Ukraine,” the CEO stated.
Furthermore, the quotas will also hinder military efforts by depriving the government of tax revenues equivalent to hundreds of millions of pounds. Metinvest is one of the largest taxpayers in the country’s private sector. Furthermore, the quotas will be imposed on duties as part of the implementation of the CBAM (Carbon Border Adjustment Mechanism).
Ryzhenkov noted that due to the war, Metinvest was unable to invest billions of euros in the construction of “green” electric arc furnaces at the Zaporizhstal and Kametstal plants, although the company had planned to do so even before the full-scale Russian invasion.
Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its facilities are located in Ukraine—in the Donetsk, Luhansk, Zaporizhzhia, and Dnipropetrovsk regions—as well as in European Union countries, the United Kingdom, and the United States. The holding’s main shareholders are the SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
The ‘Kametstal’ plant, part of the “Metinvest” mining and metallurgical group and established at the facilities of the Dniprovsky Metallurgical Plant (Kamenskoye, Dnipropetrovsk Oblast), has reduced electricity consumption in its converter shop by 6 kWh per ton of steel produced, from 27.4 to 21.4 kWh/t, through measures to reduce equipment load during periods between smelting runs.
According to the company, in particular, the downtime for unloading converter exhaust fan rotors has been cut in half. Operations have been organized on a rotational basis for each of the two converters, allowing equipment not involved in the current melt to be shut down and minimizing idle time, thereby ensuring a systematic reduction in electricity consumption.
In addition, electricity consumption by circulation pumps No. 1 and No. 2—which supply water to the converter gas cooling boilers on both operating converters—has been reduced by 1.2 kWh/t. As part of the investment project, frequency converters and modern controllers from Schneider were installed on CN-1 and CN-2. This allows for the automatic unloading of pumping equipment in accordance with the steelmaking process, thereby minimizing its electricity consumption between converter purges.
In the post-converter steel processing department, electricity consumption was reduced by 4.6 kWh/t through the phased implementation of effective engineering solutions to optimize metal heating. At the same time, the algorithm for automatic control of the metal heating process in the “furnace-ladle” unit was refined and improved by selecting the optimal combination of heating stages and heating rates.
Kametsal was established on the basis of PJSC Dniprovsky Coke Chemical Plant (DKCHZ) and PJSC Dniprovsky Metallurgical Plant (DMP). It is part of the Metinvest Group.
Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its facilities are located in Ukraine—in the Donetsk, Luhansk, Zaporizhzhia, and Dnipropetrovsk regions—as well as in European countries. The holding’s main shareholders are the SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
