Mining and Metallurgical Group “Metinvest” continues to support defenders of Ukraine and in November at enterprises of Krivoy Rog the company manufactured and transferred to the military 12 metal shelters that will strengthen the trenches and protect soldiers from artillery fire.
According to a company press release, the modular shelters are produced by teams of fitters and electric and gas welders at different enterprises of the group. The structures are assembled from corrugated steel according to an advanced design, taking into account the needs of the military. Each structure is six meters long and more than two meters in diameter, but can be easily disassembled for transportation and relocation to other positions. Specialists spend about 400 hours to produce one such construction.
It is noted that the modular shelters for the military are multifunctional. Inside each of them they dispose of six wooden beds and make a lifting floor that can be used as a storage area. They also installed special compartments for storing ammunition and strategic supplies, and heaters with clothes dryers were installed for warmth. The metal stoves were also used to cook food and boil water. In case of danger, defenders will be able to exit through the blocks with an emergency exit.
Protective structures are needed by the military to protect our nation’s borders and on the front lines. Within the framework of Rinat Akhmetov’s Steel Front militarized initiative, the company’s enterprises manufactured and delivered 40 reliable modular shelters to the Ukrainian military. Metinvest enterprises plan to produce them until the end of the war.
It is also reminded that in order to create comfortable conditions for the defenders during the cold season the workers of Kryvyi Rih enterprises delivered 300 huts to the front line. “Metinvest workers” also help the fighters with equipment, fuel, building materials and devices for arrangement of bunkers.
Another press release states that December 6 is the Armed Forces Day in Ukraine. “Metinvest congratulates the incredible Ukrainian military and thanks them for the opportunity to meet new mornings, live and work on their land.
“The whole world friendly to us and even enemies recognize that such a motivated, professional and brave army cannot be found – it is in Ukraine”, – stresses in the congratulation.
It is also noted that Metinvest’s Krivoy Rog enterprises have been side by side with the military since the first missile attack on the city. “We built defensive structures, produced metal hedgehogs, armor plates, provided equipment, fuel and spare parts, equipped the life of the defenders. In the workshops of the enterprises we produced burzhuyki to keep the soldiers warm. Metinvest Group provided all the mobilized workers with bullet-proof vests and helmets, and their families were supported by humanitarian aid from Saving Life. “Until the final Victory and after it Metinvest will be a reliable support of Ukraine and the AFU,” the statement summarizes.
“Metinvest is a vertically integrated group of mining and metallurgical enterprises. Enterprises of the group are mainly located in Donetsk, Luhansk, Zaporozhye and Dnipropetrovsk regions.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it jointly.
Metinvest Holding LLC is the management company of Metinvest Group.
Mining and Metallurgical Group Metinvest announced a tender to redeem its Eurobonds maturing April 23, 2023 for up to $70 million at a price of 70% to 80% of face value.
“The rationale behind the invitation (to tender) is to actively manage the group’s debt maturity profile to smooth debt service cash outflows and reduce liquidity shortages in the first half of 2023, given the highly volatile operating environment for the group and its subsidiaries,” Metinvest said in its information on the exchange.
The group stressed that it currently intends to continue servicing its debt, but the ongoing war in Ukraine, combined with volatile prices for Metinvest’s products, are creating unprecedented challenges for operations.
“The invitation gives the group’s investors an opportunity to reduce their exposure to Ukraine-related business in the context of the ongoing war and broader market turmoil,” Metinvest pointed out.
He specified that its Eurobonds-2023 with a total nominal value of $168.583 million are currently circulating in the market, although their initial issue size was $944.15 million.
Competitive and non-competitive bids for redemption are being accepted until the evening of December 9, and the results of the offer will be announced on December 12 with settlements on December 14.
“Metinvest” can continue the terms of the offer until the end of the day on December 23, but in this case will redeem the bonds at the price previously established during the tender minus another 3% of the face value with the final announcement of the results on December 28 and the settlement on December 29.
“Metinvest is a vertically integrated mining group of companies. Its major shareholders are SCM Group (71.24%) and Smart-Holding (23.76%), which jointly manage the company.
Earlier, similar tenders to buy the Eurobonds were announced by SCM’s energy subsidiaries: DTEK RES and DTEK Energy.
In particular, Ornex Limited of SCM Group is ready to buy DTEK RES Eurobonds issued for EUR325 mln at 8.5%, maturing in 2024, for the total amount of up to EUR20 mln at 30% of the face value. Bids were accepted until December 1, with the announcement of the results scheduled for December 5 and settlements on December 8.
DTEK Energy then announced that DTEK Holdings Limited is ready to buy its Eurobonds maturing in 2027 with a coupon rate of 7/7.5% for a total of $50 mln at a price of up to 27% of par. Bids will be accepted until the evening of Dec. 8, with the announcement of the results scheduled for Dec. 9 and settlement on Dec. 15.
According to the Stuttgart Stock Exchange, at the moment Metinvest’s Eurobonds are quoted at 79.67% of face value.
The mining and metallurgical group Metinvest intends to receive compensation from Russia for the enterprises destroyed by the war and direct it to the development of Ukrainian assets.
“We should get full compensation for the damage from the Russians and reinvest it in restarting Ukrainian plants,” Metinvest CEO Yury Ryzhenkov said on the air of Ian King Live on Sky News in Britain.
According to him, the company helps Ukraine defend itself against Russian attacks. He also shared the latest news about the current activities of the group’s enterprises and presented a steel bracelet “Azovstal. Symbol of indestructibility”, a joint project with UNITED24 presidential charity platform to raise funds for the Armed Forces of Ukraine. Metinvest’s participation in the project is part of Rinat Akhmetov’s Steel Front militarized initiative.
“From the first days of the full-scale invasion, both of our shareholders (Rinat Akhmetov and Vadim Novinsky) decided that the company should support the Armed Forces of Ukraine. Therefore, in addition to using our equipment to create a defense line, we developed new ways to produce armored steel, which is now used in body armor. We have supplied the Ukrainian Army and Territorial Defense with over 150,000 body armor. We have also developed new steel mobile shelters that can be used in the field to heat and protect the military from shelling,” said the top manager.
In addition, the group purchases and supplies the army with vehicles, armored vehicles, thermal imaging cameras, radios, etc. A large number of vehicles and equipment needed by the Ukrainian defense forces in the field.
Answering the question about what major assets of the company are now operating in Ukraine, the General Director stated that at present the group has two metallurgical plants in Ukraine: one in Zaporizhzhya and the other in Kamensk. Both of them are in operation now and their capacities are about 50-60% loaded. The company may produce armored plates, steel shelters, etc.
As for the group’s foreign assets, they experienced some difficulties at first mainly because they relied on semi-finished products from Azovstal to operate.
“Since then we have diversified our sources of supply of semi-finished products. For example, here in the UK, slabs are now supplied by British Steel, ThyssenKrupp. In Italy it is ADI. We have found different suppliers that can provide the volumes we need,” said the CEO.
According to him, everyone in the U.K. is working under the same conditions. And the steel industry is as competitive as it can be.
“But when it comes to support, and we’re all colleagues, we understand how we can support each other in the industry,” Ryzhenkov said.
Asked about the situation in Mariupol, which is under occupation, he said the group knows little about what is happening in Mariupol right now.
“There are still quite a few people there, but they can’t say much about what’s going on in the city. As far as I understand, the power supply is unstable, there is no water, no heating, there is a humanitarian disaster in the city right now,” the head of the company explained.
And again expressed confidence that there will be compensation for the destroyed plants.
“We are confident that we should receive full compensation for the losses from the Russians and reinvest it in the Ukrainian plants to resume their work,” the top manager summarized.
“Metinvest is a vertically integrated group of mining and metallurgical enterprises. The enterprises of the group are mainly located in Donetsk, Luhansk, Zaporizhia and Dnipropetrovsk regions.
The major shareholders of the holding are SCM Group (71.24%) and Vadim Novinsky’s Smart Holding (23.76%) that manage it jointly.
Metinvest Holding LLC is the management company of Metinvest Group.
COMPENSATION, DEVELOPMENT, METINVEST, RUSSIAN FEDERATION, Ukrainian plants
Mining and Metallurgical Group “Metinvest” allocated 10 million UAH for the purchase of three medical vehicles for Krivoy Rog, the press service of the company said.
According to the company’s press release, Metinvest together with Kryvyi Rih military administration takes responsibility for provision of food products to vulnerable groups of population, welfare of displaced people and support of medical sphere. Financial support directed by Metinvest to the needs of the city already amounts to UAH 30 mln, the last tranche helped to increase the ambulance fleet.
At the same time, there are over 70 thousand internally displaced people in Kryvyi Rih. At the same time, doctors in the city’s hospitals save the lives of citizens and wounded defenders around the clock, and the issue of increasing the number of ambulances is especially urgent in order to get patients to the operating room in time.
“Metinvest’s help in acquiring an additional number of ambulances will significantly strengthen the mobility of the service,” said Konstantin Murashko, head of the health department of the executive committee of the Krivoy Rog City Council, who is quoted by the press service.
The press release reminds that since the beginning of full-scale war, Metinvest has established regular delivery of aid to Krivoy Rog hospitals. In total, in cooperation with Rinat Akhmetov’s Foundation there were purchases of medical devices, medical equipment and expendable materials for hospitals in Krivoy Rog to the amount of UAH 52 mln.
“Metinvest is a vertically integrated group of mining and metallurgical companies. The group’s enterprises are mainly located in Donetsk, Luhansk, Zaporizhzhya and Dnipropetrovsk regions.
The major shareholders of the holding are SCM Group (71.24%) and Vadim Novinsky’s Smart Holding (23.76%) that manage it jointly.
Metinvest Holding LLC is the management company of Metinvest Group.
Mining and metallurgical group “Metinvest” has carried out a number of reshuffles in its management, in particular, by expanding the area of responsibility of the general director of the Zaporizhzhya metallurgical plant “Zaporizhstal” Alexander Mironenko.
According to the official statement of the press service of the Metinvest group, in response to a corresponding request from the Interfax-Ukraine agency on Thursday, the changes in the organizational structure of Metinvest are due to the fact that the Russian military aggression against Ukraine led to the shutdown of the group’s enterprises in Mariupol and Avdiivka, the break sustainable technological and supply chains – both intragroup and external.
“In response to new challenges, Metinvest decided to change the organizational structure of the group, designed to improve the operating model of sales, logistics and purchases, to strengthen the company. Thus, the Commercial Directorate of the Metinvest Group was created on the basis of the Sales Directorate and the Logistics Directorate and procurement. Dmitry Nikolaenko headed the Commercial Directorate,” the response to the agency explains.
And it is added that the unification of the areas of logistics, sales and purchases and the creation of a single center for their coordination and management is aimed at the effective management of key cost processes in the company, at obtaining an additional effect from the synergy of these main functions and building an end-to-end process of their cross-functional interaction.
“The changes also affected the Operational Directorate of the Metinvest Group, which was headed by the General Director of Zaporizhstal Alexander Mironenko. He will also continue to act as the General Director of the joint venture of the Metinvest Group – the Zaporizhstal Combine,” the company’s information states.
At the same time, it is emphasized that the company seeks to maintain its human resources potential, therefore, all rotations and appointments to key positions are made by moving managers or combining roles, taking into account changes in the business configuration.
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. The plant specializes in high-quality hot-rolled steel coil, hot-rolled sheet, cold-rolled sheet, cold-rolled coil made of carbon and low-alloy steels, as well as steel strip, black tin, bent profile.
Zaporizhstal is in the process of integrating into the Metinvest group, the main shareholders of which are PJSC System Capital Management (71.24%) and the Smart Holding group of companies (23.76%).
Metinvest Holding LLC is the management company of the Metinvest group.
The international rating agency Fitch Ratings has affirmed the long-term issuer default rating (IDR) in foreign and national currencies and the senior unsecured rating of Metinvest Mining and Metallurgical Group at ‘ССС’, the recovery rating is ‘RR4’.
“Metinvest’s ratings reflect the company’s sufficient funding over the next six months, supported by cash flow generation from its international asset base, few significant short-term maturities and existing cash position. This also reflects increased operational risk for the company following the military invasion Russia to Ukraine, including the occupation or damage of some of its assets, as well as severe logistical restrictions,” Fitch explained in a press release on Tuesday.
At the same time, it is noted that about a third of the company’s EBITDA in 2022 will be generated by its international assets.
The ‘CCC’ rating reflects Metinvest’s increased operational and financial risks. Ferrexpo plc has a higher ‘CCC+’ rating due to its lack of financial debt. Metinvest’s business profile benefits from upstream assets outside of Ukraine, maintaining its rating above Interpipe Holdings plc (CCC-), whose assets are wholly concentrated in Ukraine,” the agency explains.
Analysts predict that Metinvest’s sales will be around 50% of 2022 levels, with a gradual recovery between 2023 and 2025.
In addition, experts suggest that Metinvest will be considered an operating company in the event of bankruptcy and will be reorganized, but not liquidated.
According to analysts, Metinvest has limited liquidity: the company keeps most of its cash in offshore zones. The company continues to generate significant cash flows from its coal assets in the US, as well as its steel mills in Europe, and its iron ore and steel assets in Ukraine. This has helped offset the outflow of working capital in recent months.
Metinvest has minor upcoming maturities in 2022: its next significant maturity is $176 million due in April 2023 in connection with the redemption of its bonds, according to a press release.
As Yury Ryzhenkov, general director of Metinvest, said, the company is servicing its credit obligations, including Eurobonds, and intends to continue doing so in the future.
“We have not declared force majeure on debt. Unlike many Ukrainian issuers, we continue to service our entire loan portfolio, including planned payments on Eurobonds. And I think that we should have enough strength to do this,” he said. he.
Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Lugansk, Zaporozhye and Dnepropetrovsk regions, in European countries. In particular, in Bulgaria there is a Promet Steel plant with a capacity of 500 thousand tons of rolled metal per year, in Italy – Metinvest Trametal and Ferriera Valsider with a total capacity of 1.2 million tons per year. In the UK, the company owns the Spartan UK plant, which can produce 200 thousand tons of rolled steel per year.
The main shareholders of the holding are the SKM group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of the Metinvest group.
