Metinvest Mining and Metallurgical Group has allocated UAH 4.8 billion to help Ukraine and its citizens since the start of the full-scale war, including more than UAH 2.5 billion for the army as part of Rinat Akhmetov’s Steel Front military initiative.
According to the company’s press release on Thursday, the group remains a reliable support for the country in the fight against the enemy.
At the same time, Metinvest CEO Yuriy Ryzhenkov noted that “the war made us feel what it is like to lose the most valuable things. But it did not make us give up.”
“We have managed to rebuild our business to meet the difficult realities of today. We have established supplies of equipment and ammunition to the frontline. We organized systematic assistance to the affected civilians. And we are already making plans to rebuild Ukraine after the victory. Metinvest’s team has been, is and will remain a reliable support for the country and its people. We are ready to overcome any challenges, because we know who we are protecting and what we are fighting for,” the company’s CEO said, as quoted by the press service.
The press release states that Metinvest’s enterprises in Ukraine are under constant threat of enemy shelling. The group’s assets in Mariupol and Avdiivka have been damaged by hostilities, while Mariupol is temporarily occupied. Despite all this, the company’s enterprises operate at different levels of utilization due to security, logistics, energy, economic and other factors.
Thus, since the beginning of 2023, following the stabilization of energy supply, Metinvest has managed to gradually increase the utilization of its iron ore assets in Kryvyi Rih to at least 30% of the pre-war level and maintain its focus on the production of pellets and products with a high iron content. In the second half of 2023, GOKs’ utilization was positively affected by the reopening of the sea corridor in Ukraine.
Electricity imports since January 2023 have also ensured more stable operations and product mix flexibility at Kametstal.
In 2023, Zaporizhstal started production of hot-rolled steel products that meet the requirements of EN 10025-1 from S235-275 J0-J2 and S355 J0-J2 steel grades, which were produced at Ilyich Iron and Steel Works of Mariupol before the full-scale invasion. To this end, the company underwent a production process inspection and technical capability analysis and, as a result, received a certificate of conformity for its production control system from the international certification body Dedal.
In 2023, Metinvest’s steelmaking companies, including the joint venture, launched production of 25 new products.
Pokrovskoye Coal Group’s enterprises operate at high utilization rates, and construction of the 11th coal mining unit is underway, which is scheduled to be commissioned in 2025.
Metinvest’s priority is to take care of its employees: all of its enterprises have bomb shelters, and on June 1, 2023, the company introduced an additional bonus in Ukraine.
In the first nine months of 2023, Metinvest, including its associates and joint ventures, paid more than UAH 11 billion in taxes and fees to the budgets of all levels in Ukraine.
It is also reported that Metinvest continues to fight theft by the Russian Federation, which illegally exported more than 234,000 tons of the company’s steel products from Mariupol. In particular, 27 of the company’s enterprises have filed lawsuits with the European Court of Human Rights against Russia for damage to the group’s property in Mariupol and other territories of Ukraine since February 24, 2022.
To strengthen the defense capabilities of the Ukrainian Armed Forces, the company has established systematic supplies of machinery and equipment to the frontline.
Despite the war, Metinvest plans to implement its green transformation strategy. This includes expanding the production of DR pellets, the main raw material for more environmentally friendly steelmaking using electric arc furnaces. “Metinvest aims to build a new business format where the EU market will open its borders to Ukrainian products. To make this possible in times of war, business and the government must join forces and go this way together, the press release summarizes.
“Metinvest is a vertically integrated group of steel and mining companies. The group’s enterprises are located mainly in Donetsk, Luhansk, Zaporizhzhia and Dnipro 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.
Metinvest Group’s metallurgical enterprises in Ukraine have launched production of 25 new products in 2023, including the joint venture Zaporizhstal, which has mastered the production of 14 new products.
According to the group’s press release on Tuesday, despite Russia’s full-scale invasion of Ukraine that has been going on for almost two years, Metinvest remains the country’s economic and industrial backbone. The Group’s enterprises have launched new products, including partially compensating for the production of assets in the temporarily occupied Mariupol.
Most of the new products were launched in the semi-finished products segment, including hot-rolled coils and long products (seven each) and cold-rolled and galvanized coils (two each). Zaporizhstal and Kametstal accounted for the lion’s share of new products. The Group’s galvanized steel producer, Unisteel, launched two new types of products.
It is specified that Zaporizhstal started producing slabs of various sizes from steel grades S235, S275, and S355 as semi-finished products. These products are supplied to Metinvest’s European assets, where they are used to make hot-rolled plates and coils. For its part, Kametstal has mastered the production of two types of square billets – continuously cast and hot-rolled – from new steel grades and with increased requirements for structure and properties. The plant now uses these semi-finished products for its own production of long products and wire rod and supplies them to customers in Ukraine and Europe.
As part of its hot-rolled, cold-rolled and galvanized coils and sheets product range, Zaporizhstal has started producing seven types of rolled products for the construction and machine-building industries in accordance with European, American and Ukrainian standards. In particular, the plant has launched the production of S355J2 coils in accordance with the European standard EN 10025-2 and its Ukrainian counterpart DSTU EN 10025-2. The products have been tested and received confirmation of conformity from an international certification center. Hot-rolled steel products made of S355J2 steel produced in Zaporizhzhia are already successfully supplied to Poland, Romania and other European countries.
In addition, this year Zaporizhstal has mastered the production of cold-rolled coils from structural steel grades S320GD and S350GD for galvanizing. Previously, this semi-finished product was supplied by Ilyich Iron and Steel Works of Mariupol for protective coating. The launch of this product at Zaporizhstal allowed Unisteel to resume production and supply of structural galvanized coils used in the manufacture of steel structures.
The press release emphasizes that cooperation between Zaporizhstal and Unisteel has also been strengthened through other areas of cooperation. In 2023, the plant’s cold rolling shop completed the process of mastering the technology of cutting galvanized coils into sheets, which made it possible to significantly increase the sales of such products in the domestic market.
In terms of long products, Kametstal mastered new technologies and started production of steel grinding balls with diameters of 25 and 100 mm, as well as SVP27 profiles for the mining and metallurgical sector. The plant also produced two types of wire rod – 7.5 mm in diameter from SAE 1008 grade according to the American standard and 8 mm in diameter from European C80D2 steel. The products are used for wire drawing, rope manufacturing and hardware production.
“KAMETSTAL also started production of A500C rebar with a diameter of 36 mm. Such rolled products are in demand for critical construction and infrastructure projects and are used to build bridges, shelters and multi-storey buildings. For the machine-building industry, the plant has launched mass production of hot-rolled rounds with a diameter of 42 mm, which are used to create parts and structural elements for machinery and equipment.
“Metinvest is a vertically integrated group of steel and mining companies. The Group’s enterprises are mainly located 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.
Metinvest Mining and Metallurgical Group is considering increasing the production of mine trawls for tanks to clear territories as part of Rinat Akhmetov’s Steel Front military initiative.
“The Ukrainian Armed Forces need 100 trawls per month,” said Metinvest Group Chief Operating Officer Alexander Mironenko in an interview with the corporate website.
According to him, the group’s specialists have been in close contact with the military since the beginning of the war and are constantly trying to respond to their needs. “When preparations for the counteroffensive began, we realized the extent of the enemy’s mining of our territory. These are many kilometers of fields mined mainly with TM-62 anti-tank mines. To cross them, other means are needed directly on the equipment.
One of these models, the most common in the Soviet Union, which is most suitable for Soviet-style T-64 and T-72 tanks used by the Ukrainian army, is an analog of the KMT-7 mine trawl. Its production was discontinued, and for some time this trawl was not produced.
“When the offensive began, the military asked us to look at the trophy samples taken from the downed Russian tanks… We made drawings and developed test samples of these trawls. Then we started testing them together with the military to make sure that the design was reliable and would withstand the number of explosions required by the regulations,” explains the top manager.
According to him, the trawls are now being used in many areas. We have delivered 8 units to the military, two more are waiting to be picked up by the military, and five are in the production process.
The trawls are used mainly in Zaporizhzhya and Donetsk. Metinvest maintains the trawls: if they are damaged, we take them away, repair them and install new rollers.
“Together with several teams, we are also considering the possibility of repairing old Soviet models, as they also fail and get damaged. There is a shortage of mine-resistant rollers that are blown up. We have set up mass production, because this is, so to speak, a consumable. Together with the trawl, we are transferring several more sets of these rollers so that they can be repaired very quickly in the field and continue to be used,” the top manager said.
According to him, without expanding production, five trawls are manufactured per month. There are opportunities to increase capacity, but there are not enough people. There are not enough specialists who can help increase production volumes, for example, to 10, 15, 20 mine trawls.
“We are now working with the Ministry of Defense to create favorable conditions and be able to recruit more staff and increase production. In general, the need mentioned by the military is more than 100 trawls per month. This is a need that needs to be met,” emphasized Mr. Myronenko.
“Metinvest is a vertically integrated group of steel and mining companies. The group’s enterprises are located mainly in Donetsk, Luhansk, Zaporizhzhia and Dnipro 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.
Metinvest Mining and Metallurgical Group has handed over another batch of vehicles and UAVs worth about UAH 12 million to the State Border Guard Service of Ukraine as part of Rinat Akhmetov’s Steel Front military initiative.
According to a press release on Friday, Metinvest handed over another batch of aid to support Ukraine’s border guards in their fight against the enemy.
It is specified that the next batch of aid to the military included ten Volkswagen vans and UAVs – five Valkyrie systems, each consisting of two aircraft, and five Mavic 3T quadcopters with a thermal imager.
“The Valkyrie is a complex that is now being heavily used by the State Border Guard Service units both during the day and at night to conduct reconnaissance and adjustments of units. Due to their technical characteristics, UAVs make it possible to operate in areas protected by enemy electronic means and to guide our artillery and assault units,” explained Dmitry Petrenko, a representative of the State Border Guard Service administration, as quoted by the press service.
As for the vehicles, Metinvest managed to find them in Germany. After the purchase, they underwent additional maintenance, all fluids and necessary spare parts were replaced.
“To date, we have handed over more than 50 four-wheel drive beads to the border guards, which are used to patrol large sections of the border. “This is also the fourth batch of Valkyries: in total, we have already handed over about 60 units. Each of these UAVs can cover 100 km, so we can say that border guards are using these “birds” to cover almost all of our borders. Metinvest’s Valkyries are also used in hot areas, such as Bakhmut,” said Oleksandr Vodovviz, Head of the Project Office of Metinvest CEO,
“In total, since the beginning of the full-scale war, Metinvest has allocated UAH 4.2 billion to support Ukraine and Ukrainians. Of this amount, over UAH 2 billion has been spent to help soldiers as part of Rinat Akhmetov’s Steel Front military initiative. The company has donated 150,000 bulletproof vests, 25,000 helmets and helmets, 80,000 anti-tank hedgehogs, 31,500 turnstiles, 1,500 drones, 2,000 thermal imagers, 500 vehicles and 300 special mobile phones.
“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.
According to the results of work in January-September of this year, “Metinvest” reduced the total production of iron ore concentrate (IRC) by 23% compared to the same period last year – to 7.513 million tons, increased the production of pellets by 48% – to 3.989 million tons, the total output of coke of coal concentrate increased by 17% to 4.318 million tons.
According to a press release from parent company Metinvest B.V. on the results of operations for the third quarter and nine months of 2023 on Wednesday, in the third quarter of 2023 the output of the total SAM increased by 13% compared to the previous quarter – to 2.766 million tons – due to increased production at all three GZK (Northern GZK, InGZK and TsGZK).
The production of commercial iron ore products increased by 3% – up to 2.180 million tons, while almost the entire volume of these products was produced with a high iron content. Due to the change in the order portfolio in favor of pellets, their production increased by 7% – to 1.434 million tons, while the production of commercial concentrate decreased by 5% – to 746 thousand tons.
In the nine months of 2023, the production of total air defense systems decreased by 23% due to the start of full-scale military operations on the territory of Ukraine at the end of February 2022. As a result, the volume of production of commercial iron ore products decreased by 12% – to 6.220 million tons – due to a decrease in the production of commercial concentrate by 49%, to 2.231 million tons. At the same time, the increase in the production of commodity pellets by 48% occurred due to the reorientation of the order portfolio. Almost the entire volume of marketable iron ore products was produced with a high iron content.
In the third quarter of 2023, the group’s coal concentrate production decreased by 19% compared to the previous quarter – to 1.275 million tons. The main factor was a 36% decrease in production volumes at United Coal Company (USA) mines – to 443,000 tons – due to the cessation of production at Carter Roag mines and a decrease in production at some Wellmore mines. The production of coal concentrate in the Pokrovsky Coal Group (Ukraine) decreased by 7% – to 832 thousand tons – due to a decrease in production due to the deterioration of geological conditions.
In the first nine months of 2023, the group’s coal concentrate output increased by 17%, mainly due to an increase in production in the Pokrovsky Coal Group – by 33%, to 2.426 million tons, as well as an improvement in the quality characteristics of Ukrainian coking coal.
Previously, the financial director of the group, Yulia Dankova, explained that as a result of the war, “Metinvest” lost control over two large plants in Mariupol and suspended production in Avdiivka. These and other challenges that the company continues to overcome have forced the business to restructure in order to survive.
So, first of all, the company provided the opportunity for its foreign enterprises to operate separately, since the vertically integrated structure was broken. Before the war, the Mariupol factories supplied semi-finished products to their rolling mills abroad, and coal concentrate went to Ukraine from the USA. Currently, the assets of “Metinvest” in Italy, Great Britain and the USA operate as independent enterprises. Coal mines in the US have reoriented product sales to domestic and export markets, and rolling mills are buying semi-finished products on the open market.
She also stated that now the group’s industrial enterprises are loaded at 65-75% capacity, and GZK – at 35-40%.
As reported, “Metinvest” according to the results of January-March of this year reduced the total production of iron ore concentrate (IRC) by 62% compared to the same period last year – to 2.306 million tons, pellets by 6% – to 1.214 million tons, the total output of coking coal of concentrate increased by 14% to 1.461 million tons. At the same time, the output of total iron ore concentrate more than doubled compared to the previous quarter – up to 2.306 million tons.
In the first half of 2023, the group reduced the production of SAMs by 46% compared to the same period last year – to 4.746 million tons, increased pellets by 37% – to 2.555 million tons, the total output of coking coal concentrate increased by 25%, to 3.043 million tons. The output of marketable iron ore products decreased by 35%, to 4.041 million tons.
According to the results of 2022, “Metinvest” reduced the production of total iron ore concentrate by 66% compared to the previous year – to 10.712 million tons, marketable iron ore products by 55% – to 7.903 million tons, in particular the volume of marketable concentrate – by 60%, to 4.718 million tons , and the volume of commercial pellets – by 45%, up to 3.185 million tons. In 2022, the group’s coal concentrate production decreased by 11% to 4.959 million tons.
“Metinvest” consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA.
The main shareholders of “Metinvest” are “SCM” group (71.24%) and “Smart-holding” (23.76%), which jointly manage the company.
“Metinvest Holding” LLC is the managing company of the “Metinvest” group.
“Metinvest reduced steel production by 43% year-on-year to 1.531 million tons in January-September this year, according to a press release from the parent company Metinvest B.V. on Wednesday, following the results of the third quarter and nine months of this year.
During this period, pig iron production decreased by 46% to 1.344 million tons, coke production by 31% to 948 thousand tons, and commercial coke production increased by 7% to 644 thousand tons.
At the same time, it is noted that due to the outbreak of Russia’s large-scale military aggression against Ukraine on February 24, 2022, Metinvest decided to suspend production at a number of its enterprises in Mariupol, Avdiivka and Zaporizhzhia, including Azovstal, Ilyich Iron and Steel Works of Mariupol, Avdiivka Coke and Zaporizhzhia Coke. Later, Zaporizhzhia-based enterprises of the Group resumed production.
As of today, the Group’s Ukrainian enterprises, except for those located in Mariupol and Avdiivka, continue to operate at varying levels of utilization, taking into account security, electricity supply, logistics and economic factors.
In the third quarter of 2023, pig iron production decreased by 10% quarter-on-quarter to 425 thousand tons, mainly due to the shutdown of blast furnace No. 1 at Kametstal for a scheduled overhaul. As a result, steel production decreased by 8% to 499 thousand tons. Over the first nine months of the year, the Group’s iron and steel production decreased by 46% and 43%. The suspension of production at the Mariupol plants from the end of February 2022 was partially offset by volumes at Kametstal.
In the third quarter, the Group produced 159 thousand tonnes of semi-finished products, down 27% quarter-on-quarter, mainly due to higher domestic consumption at downstream stages.
In addition, in the first nine months of 2023, the output of semi-finished products decreased by 26% to 657 thousand tons due to the absence of production at Mariupol plants since the end of February 2022. This was partially offset by an increase in the production of commercial billets at Kametstal’s facilities.
In the third quarter, Metinvest’s output of finished products decreased by 3% quarter-on-quarter to 583 thousand tons. At the same time, flat products production decreased by 27 thousand tons to 267 thousand tons due to a reduction in the order book at the rolling mills in Italy and the UK. This was partially offset by an increase in galvanized cold-rolled coil production at Unisteel Ukraine as the fourth inductor was restarted after being shut down for overhaul in the second quarter.
At the same time, long products production increased by 9 thousand tons to 316 thousand tons, mainly due to an increase in the rebar order book at Kametstal.
In the first nine months of 2023, finished product output fell by 26% to 1.728 million tons. At the same time, flat products production decreased by 666 thousand tons to 847 thousand tons due to the shutdown of Mariupol’s plants. This was partially offset by an increase in hot-rolled plates production at re-rolling mills in Italy and the UK as third-party slab supplies were restored.
In turn, long products output increased by 72 thousand tonnes to 881 thousand tonnes due to the stabilization of billet production at Kametstal and normalization of supplies to Promet Steel in Bulgaria.
There was no output of rail and pipe products as they were produced at Mariupol-based plants.
Coke production in the third quarter decreased by 9% quarter-on-quarter to 299 thousand tons, mainly due to lower coke demand at Kametstal. Over the first nine months of the year, this figure fell by 31% to 948 thousand tons due to the suspension of production at Azovstal and Avdiivka Coke.
As reported earlier, in January-March 2023, Metinvest reduced steel production by 75% compared to the same period in 2022 to 491 thousand tons, pig iron production also by 75% to 448 thousand tons, and coke production by 59% to 318 thousand tons, including a 1% increase in commercial coke production to 213 thousand tons.
In the first half of 2023, the Group reduced steel production by 57% year-on-year to 1.032 million tonnes, pig iron by 59% to 918 thousand tonnes, and coke by 40% to 648 thousand tonnes, including a 7% increase in commercial coke production to 429 thousand tonnes.
“In 2022, Metinvest decreased steel production by 69% compared to 2021, to 2.918 million tons, pig iron by 72%, to 2.743 million tons, coke by 64%, to 1.653 million tons, including commercial coke by 49%, to 811 thousand tons.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the USA.
Metinvest’s major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest Group.
