In 2024, the Metinvest mining and metallurgical group reduced its rolled steel production in the UK and the EU by 13% to 1.367 million tons, which was caused by unfavorable market conditions in the EU, in particular the availability of cheap Russian slab, according to the group’s annual report.
According to the report, flat steel production at Metinvest Trametal decreased by 3% to 466,000 tons, at Ferreira Valsider by 45% to 190,000 tons, and at Spartan UK by 22% to 153,000 tons.
Overall, Trametal accounted for 34% of total production in the UK and the EU last year (31% in 2023), Ferreira Valsider for 14% (22%), Promet Steel for 41% (35%), and Spartan for 11% (12%).
As reported, in 2024, Metinvest reduced sales of finished metallurgical products by 5% compared to the previous year, semi-finished products by 3%, but increased coke sales by 6%, and sales of other products and services increased by 33%.
Revenue from the metallurgical segment remained virtually unchanged compared to 2023 and amounted to $4.824 billion, while the segment’s share in consolidated revenue decreased by 6 percentage points (pp) to 60%.
At the same time, sales of merchantable pig iron decreased by 15% to $266 million due to a 16% reduction in shipments to 558 thousand tons. In particular, the reduction in resales and production volumes of the group amounted to 12% and 52%, respectively. The share of resales in total sales increased by 4 p.p. to 95%. North America and Europe remained the main markets for this product. They accounted for 71% and 23% of total shipments last year, compared with 70% and 26% in 2023.
Sales of semi-finished products increased by 9% last year to $389 million, thanks to a 16% increase in sales volumes to 716,000 tons amid a reduction in inventories. Shipments to the Middle East and North Africa (MENA) increased by 237,000 tons, accounting for 50% of total shipments in 2024 (20% in 2023). In contrast, shipments to Europe decreased by 143,000 tons and accounted for 38% of total sales (68% in 2023). The average selling price declined in line with the dynamics of CFR Turkey square billet prices (down 7% compared to 2023).
In 2024, flat steel sales declined by 6% to $2.244 billion. This was due to lower sales prices following the dynamics of the corresponding benchmark for hot-rolled coils CFR Italy, which fell by 9%. Total shipments increased by 7% to 3.047 million tons, driven by a 26% increase in resales to 2.111 million tons, which increased their share in total shipments to 69% (up 10 percentage points). Deliveries were primarily to Europe, which accounted for 72% of the total (71% in 2023). Sales in the region increased by 193,000 tons thanks to demand from key customers, expansion of the customer base, and stable operations at Black Sea ports. Domestic sales accounted for 23% of sales (25% in 2023).
Sales of long products remained unchanged in 2024 at $948 million. Shipments increased by 5% to 1.372 million tons, primarily due to higher production volumes at Kametstal. Ukraine and Europe remained the main markets for these products. They accounted for 45% and 35% of total sales, respectively, compared with 48% and 39% in 2023. The Group increased its shipments to North America, which accounted for 17% of total sales in 2024, compared with 12% a year ago. Average sales prices declined in line with the benchmark for CFR Turkey square billets.
The report notes that in 2024, Metinvest achieved significant results from operational improvements. In particular, in the metallurgical segment, coke consumption at Kametstal was reduced and blast furnace productivity was improved thanks to the rapid adaptation of pulverized coal injection technology to alternative types of coal under military supply restrictions. In addition, the optimization of raw material procurement contributed to the positive results.
Metinvest is a vertically integrated group of mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding company are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.
EU, METINVEST, PRODUCTION, rolling, UK
Metinvest B.V. (Netherlands), the parent company of the mining and metallurgical group Metinvest, increased its EBITDA by 11% in 2024 compared to 2023, to $957 million, according to updated data published in its annual report.
According to the report, EBITDA in the metallurgical segment grew by 82% to $289 million, while in the mining segment it remained unchanged at $768 million.
At the same time, it is specified that last year, corporate overhead costs and eliminations amounted to $100 million (in 2023 – $68 million). As a result, in 2024, the mining segment’s share in the group’s EBITDA (excluding corporate overhead costs and eliminations) was 73% compared to 83% in 2023, while the metallurgical segment’s share last year increased to 27% compared to 17% in the previous year.
The growth in the group’s EBITDA was primarily due to an increase in sales of own iron ore products, as well as billets and long products, operational improvements, the positive impact of the hryvnia’s depreciation against the US dollar on costs, increased efficiency at both joint ventures, lower raw material costs due to lower prices for coal, coke, and iron ore, and reduced purchases of third-party raw materials for rolling mills.
These factors were partially offset by lower sales prices, higher overall logistics costs, primarily due to increased sea shipments from Ukraine to distant markets, and higher energy costs, primarily due to higher electricity costs.
In 2024, the Group’s EBITDA margin was 12% (unchanged from 2023). The EBITDA margin of the mining segment was 20% (down 6 percentage points (pp) compared to 2023), while the EBITDA margin of the metallurgical segment was 6% (up 3 pp).
In 2024, net cash used in investing activities amounted to $197 million, down 34% from 2023. The total amount of cash used to acquire property, plant, and equipment and intangible assets decreased by 29% to $216 million. Interest income doubled to $13 million, while proceeds from the sale of property, plant, and equipment and intangible assets decreased slightly to $6 million.
In 2024, net cash used in financing activities amounted to $241 million, compared to $115 million in 2023. Net repayment of loans and borrowings amounted to $216 million (in 2023 – $185 million), mainly due to bond redemptions. Net trade financing amounted to $25 million, compared to $70 million a year ago.
In 2024, Metinvest adhered to a fairly balanced investment policy, dictated by wartime restrictions in Ukraine and the need to decarbonize the European steel industry. Investments in Ukraine were primarily directed toward employee safety, ensuring the availability and operation of critical equipment, strengthening energy resilience, and complying with environmental standards at the companies.
In addition, particular attention was paid to resolving logistical issues. Although most large strategic projects remained frozen, Metinvest launched a new project to concentrate enrichment waste at the Northern GOK. It aims to reduce waste volumes, lower operating and capital expenditures, and minimize environmental impact while maintaining production volumes.
At the same time, the group is also preparing for the country’s post-war recovery. Outside Ukraine, Metinvest is working on the Adria project to build a low-carbon steel plant in Italy.
The group’s total capital expenditures decreased by 17% to $235 million. Approximately 83% of this amount was allocated to maintenance projects and 17% to strategic projects.
Metinvest increased the capacity utilization of most of its enterprises. This was an important achievement for the group, given the prolonged impact of the war. The resumption of shipping in the Black Sea played a decisive role in our work. This ensured a reliable export route and allowed us to increase delivery volumes. At the same time, significant challenges remained. Throughout the year, power outages had a negative impact on profitability. In addition, despite incredible resilience throughout most of the year, the approaching front line forced us to gradually suspend operations at the Pokrovsk Coal Group,” said Yuriy Ryzhenkov, CEO of the group, in the report.
As reported, Metinvest’s consolidated net loss in 2024 increased sixfold compared to 2023, to $1.152 billion from $194 million, while revenue rose to $8.050 billion from $7.397 billion.
Metinvest is a vertically integrated group of mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding company are the SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.
Metinvest Group, together with the administration and the Defense Council of Kryvyi Rih, has focused its efforts on major projects to renovate the city’s healthcare facilities, according to a press release citing Igor Toniev, CEO of United Mining and Processing Plant (UMPP).
“The largest project currently being implemented by Metinvest is the overhaul of the buildings of the polyclinic and X-ray department of Kryvyi Rih City Hospital No. 3. The company has allocated almost UAH 125 million for this large-scale work. This month, the overhaul of the main inpatient building of City Hospital No. 7 is scheduled to begin. Metinvest is allocating UAH 61.6 million for the development of project documentation, general construction, roofing, and facade work,” said the top manager.
At a meeting between Metinvest Group management and the head of the City Defense Council, Oleksandr Vilkul, it was noted that the project to overhaul the third hospital began in 2023, with funding from both Kryvyi Rih and Metinvest. Equipment for X-rays and fluorography was purchased with funds from the local budget. Also, the second and third floors of the polyclinic will be renovated at the expense of the city. As part of the project to overhaul the polyclinic of the third hospital, the group undertook the construction work and modernization of the first floor, the X-ray department, and the construction of a shelter for 350 people.
Vilkul stated that the city is actively implementing a large number of projects in the field of medicine. In particular, there is one large-scale project that is starting – the reconstruction of Hospital No. 7, which is the main cluster institution for the northern part of the district, Zhovti Vody, and the surrounding villages. The project involves the renovation of the main inpatient department. The project is being financed from three sources: the city budget, a grant won in a competition organized by the Ministry of Infrastructure (this will be co-financed by the European Investment Bank through the Ministry of Infrastructure), and funds from Metinvest.
“By joining forces, we are implementing a medical project that is important for the community,” Vilkul stated.
Metinvest is a vertically integrated group of mining and metallurgical companies. Its enterprises are located in Ukraine, in the Donetsk, Luhansk, Zaporizhia, and Dnipropetrovsk regions, as well as in the European Union, the United Kingdom, and the United States. The main shareholders of the holding company are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.
Zaporozhkoks, one of Ukraine’s largest coke and chemical producers and a member of Metinvest Group, reduced blast furnace coke production by 0.3% year-on-year to 434.1 thousand tons from 435.3 thousand tons in January-June this year.
According to the company, it produced 76.3 thousand tons of coke in June, compared to 76 thousand tons in the previous month.
As reported, Zaporozhkoks increased its blast furnace coke production by 2.1% in 2024 compared to 2023 – to 874.7 thousand tons from 856.8 thousand tons.
“In 2023, Zaporozhkoks increased its blast furnace coke production by 16% compared to 2022, up to 856.8 thousand tons from 737.4 thousand tons.
“Zaporozhkoks has a full technological cycle of processing coke products.
“Metinvest is a vertically integrated mining group of companies. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of Metinvest Group.
Metinvest Mining and Metallurgical Group increased environmental spending at its enterprises by 2% year-on-year to $170 million in 2024, according to Metinvest’s presentation at the Barclays ESG Emerging Markets Corporate Day, published on the Irish Stock Exchange on Wednesday.
According to the presentation, the group increased its investments in energy efficiency projects by more than 50% in 2024 compared to 2023, spending about $17 million.
The document states that the group has benefited from the Black Sea Corridor opened in the second half of 2023: it helped to increase capacity utilization and open up effective access to remote markets, which in turn contributed to operational and financial results.
At the same time, the group’s operations at Pokrovskugol were suspended due to changing conditions on the frontline, energy supply shortages and the security situation.
The presentation notes that the global pricing environment remained volatile amid ongoing uncertainty caused by trade tensions in the United States, as well as other geopolitical and economic factors.
“Metinvest emphasized that with changes in supply chains, assets outside Ukraine have adapted to the new circumstances. Processing plants in Italy and the UK are now focusing on their local markets, with little or no Ukrainian supply. The plant in Bulgaria continues to use Ukrainian raw materials. American coking coal mines have increased their supplies to Ukrainian coke plants.
According to the presentation, Metinvest has been consistently fulfilling its environmental obligations even in times of war, prioritizing energy security management to ensure stable operation of its assets. Thus, the Group has purchased diesel generators and started installing gas piston units. It also plans to deploy solar power plants to increase energy autonomy at its production facilities in Ukraine, while critical repairs continue to keep dust and gas emissions below permissible levels.
In addition, Pivnichny GOK launched a project to thicken concentration waste to reduce the volume of sludge sent to the tailings pond.
Air emissions increased by 5% due to increased production at Northern GOK and Kametstal. Water consumption increased by 6% following the launch of an additional unit at Kametstal’s thermal power plant. The Group recycled and reused 92% of water consumed from all sources.
The volume of waste generated increased by 10%, reflecting higher capacity utilization at Northern GOK. Almost all of the waste was non-hazardous, mainly overburden and tailings from iron ore production.
The presentation states that Metinvest remains committed to the future of its green steel and continues to explore opportunities to move towards carbon neutrality, focusing on improving the quality of iron ore products at Northern GOK as its magnetite ores are well suited for pelletizing; Northern GOK is already capable of producing 2.3 million tonnes of high quality pellets per year, which are used in direct reduced iron technology. Efforts are also underway to build a new, state-of-the-art green steel plant in Italy in partnership with Danieli with a planned annual capacity of 2.7 million tons of low-carbon hot-rolled steel.
The way to decarbonize Metinvest’s Ukrainian assets will be determined after the active phase of the war is over and its impact is assessed.
As of the end of 2024, the Group’s adjusted headcount amounted to 40,535 thousand people (excluding employees with suspended employment), down 13% year-on-year. As of the end of 2024, about 6,000 employees served in the Ukrainian defense forces, which is 15% of the adjusted headcount.
“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 the European Union, the United Kingdom and the United States. The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of Metinvest Group.
Metinvest Mining and Metallurgical Group has manufactured and assembled a 3 ton armor shell to cover key elements of the Patriot system as part of Rinat Akhmetov’s Steel Front military initiative.
According to the group’s press release, Metinvest continues to strengthen the protection of Ukraine’s air defense forces as part of the Steel Front initiative, this time by creating a shelter for the Patriot air defense system.
It is specified that the protection consists of a steel frame and armored plates. The design covers several important components of the system: the SAM control station, radar comparator (Doghouse), and generator.
“In such war conditions, every minute that air defense works saves lives. Our protective shells are designed for this very purpose – to ensure that the equipment remains in service even under fire,” commented Oleksandr Myronenko, Group Chief Operating Officer.
In addition, it is reported that since the beginning of 2025, Metinvest has begun systematic work on protection for air defense systems. The first shells were installed at air defense facilities back in the spring, and since then, the designs have been constantly improved. Each new project is adapted to a specific location and type of equipment.
Dozens of specialists are involved in the production of the armor: milling, turning, drilling, planing, electric and gas welders, metalworkers, blacksmiths, and painters. For security reasons, Metivest has moved all production for the army off-site: these are secret sites whose location is not disclosed.
“Rinat Akhmetov’s Steel Front is the largest private initiative to support the Armed Forces of Ukraine. As part of the project, SCM Group companies manufacture and supply the army with modern shelters, equipment protection, electronic warfare equipment, vehicles, drones, fortifications and other equipment that is critical at the front. The initiative focuses on the in-house production of solutions adapted to war conditions.
“Staliy Front already manufactures protective screens for vehicles such as Abrams, Bradley, Roshel, Kozak, and MT-LB, which perform combat missions on a daily basis.
The Patriot air defense system is an American medium- and long-range air defense system developed by Raytheon. Designed to intercept aircraft, cruise and ballistic missiles, it has a phased array radar and high-precision interceptor missiles.
