Business news from Ukraine

“Zaporizhstal” purchased respirators for gas rescuers for UAH 6 mln

Zaporizhstal Iron and Steel Works will save UAH 1.6 million by implementing one of its rationalization proposals in the sinter shop for the use of used equipment.

According to the company, Zaporizhstal employees continue to generate effective rationalization ideas and implement them in production, receiving additional remuneration for this, and the company receives additional savings.

“This time we are talking about the Proposal Submission System (PSS) in the sinter shop. Here, specialists have found a solution to save money on the production of bandages for coke oven rolls. Instead of purchasing billets for their production, the sinter plant proposed to use the used backup rolls of the BTS-1680 continuous thin-sheet mill in the hot strip mill shop. One such roll will replace two billets,” the company explains.

According to preliminary estimates, the savings will amount to more than UAH 1.6 million per year.

Another press release reports that Zaporizhstal has purchased 20 modern breathing protective apparatus for specialists working in gas-hazardous work areas, as well as a device for testing breathing apparatus. The company allocated about UAH 6 million for these purposes.

It is specified that DEZEGA’s P-30EX compressed oxygen isolating regenerative respirators will provide comfortable and safe working conditions for gas rescue specialists. This is the lightest and most reliable breathing protective apparatus certified by the State Emergency Service of Ukraine and compliant with European standards.

Twenty sets of modern breathing apparatus will replace the previous generation of protective equipment and ensure safe work in gas-hazardous areas of the sinter and blast furnace processing and other units.

The breathing apparatuses provide autonomous operation for up to four hours and are equipped with signaling devices. To check the serviceability of the new breathing apparatus, the plant purchased an additional modern DEZEGA CheckUp device. The device is connected to the apparatus and automatically checks the technical condition of the protective equipment. The results of a thorough check of the breathing apparatus are displayed on the station’s electronic display, and in case of deviations from the norm or the slightest malfunctions, the devices are serviced or calibrated to the design parameters.

“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 around the world.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding (23.76%). Metinvest Holding LLC is the management company of Metinvest Group.

“Metinvest” allocated UAH 23 bln to modernize Kametstal and Zaporizhstal steel plants

In 2022-2023, Metinvest Mining and Metallurgical Group invested UAH 23 billion in the modernization of Kametstal and Zaporizhstal steel plants and the green transformation of the enterprises.

Metinvest’s Chief Operating Officer (COO), Oleksandr Myronenko, said during the discussion “The largest wartime investors: a look into the future” at the Forbes Ukraine forum “Money for Victory” that the company’s priority areas for investment in 2024-2025 are employees, equipment and assistance to the Ukrainian Armed Forces.

“We have three key priorities. The first is our employees. The second is equipment and production sites. And the third is to support the Armed Forces. Especially in the cities where our enterprises are located. These are Zaporizhzhia and Pokrovsk, located 40 kilometers from the front line. We must support the units that defend these cities,” said Mr. Myronenko.

He added that the company’s employees are paid an increased bonus, which reaches 20-50% of their salary, and that starting May 1, salaries were increased by up to 20% depending on their specialty.

Metinvest’s COO noted that in 2024, the company plans to invest $320 million in capital and about $350 million in operating investments in equipment and work sites.

“These are investments aimed at maintaining our equipment: repairs of blast furnaces and sintering machines, maintenance of equipment at mining and processing plants and development of mine management in Pokrovsk,” explained the top manager.

According to him, the company is currently operating at 65%-70% of its capacity. “And we clearly understand that when the hostilities end and the infrastructure is fully restored, we will need to accelerate – at the expense of people and equipment,” he said.

Mironenko added that the company has already allocated more than UAH 6 billion for humanitarian and military support to Ukraine since the start of the full-scale war. And now Metinvest is allocating about UAH 200 million a month to build fortifications and support brigades from Dnipro to Donetsk.

“We have a clear strategy for the development of Ukrainian and foreign enterprises. Now it is very difficult to persuade banks to finance any projects in Ukraine. We estimate the full transition of Ukrainian enterprises to green metallurgy within 10 years after the end of the war at about $9 billion,” the COO said.

He also said that the company would not be able to implement such a project on its own and would need to attract external financing. Since this option is currently not possible, Metinvest is considering a joint project with Danieli to build a steel plant in Italy, with an estimated investment of about $2 billion.

“The Ukrainian economy will benefit from the implementation of such a project. We will be producing energy-efficient green steel at a very low cost because we have our own resource – iron ore in Kryvyi Rih. From this point of view, we believe that the Ukrainian-Italian joint venture will be much more efficient than a European-only production facility and will be able to compete with European producers,” said Mr. Myronenko.

Metinvest’s COO also noted that the company’s operations are currently being negatively affected by the mobilization of personnel, as one in six employees is serving in the Armed Forces. “This is a big challenge in relations with the government. And it has a bigger impact on our operations than any commercial disputes,” the top manager stated.

He also emphasized that Metinvest buys equipment, drones, electronic warfare devices, etc. for the Armed Forces of Ukraine. There are also two proprietary developments that the group has already codified and certified with the Ministry of Defense and will now begin official deliveries. These are corrugated steel shelters and mine trawls that are installed on tanks.

The SSO clarified that the shelters produced by Metinvest are half the price of those currently purchased by the country, and the situation with mine trawls is about the same.

“The second thing we do is to make anti-submarine shelters for equipment. For example, Abrams, which are now fighting in the Donetsk sector, will be completely covered with our anti-water nets, and this will enhance their protection. We are also developing and already installing such shelters on Soviet-made T-64 and T-72 tanks. And there are many other things we are doing to make our soldiers feel protected,” summarized Mr. Myronenko.

“Metinvest is a vertically integrated group of steel and mining companies. Its enterprises are located in Ukraine – in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions, as well as in Europe.

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.

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“Zaporizhstal” increased rolled steel output by 47.4%

In January-May of this year, Zaporizhstal Iron and Steel Works increased its rolled steel output by 47.4% year-on-year to 1 million 48.8 thousand tons from 711.6 thousand tons.

According to the company, steel production during this period increased by 45.4% to 1 million 249.5 thousand tons, and pig iron production by 36.3% to 1 million 290.4 thousand tons.

In May, Zaporizhstal produced 240 thousand tons of pig iron and 240.2 thousand tons of steel, and shipped 204 thousand tons of rolled products.

As reported earlier, in 2023, Zaporizhstal increased its rolled steel output by 57.2% compared to 2022, to 2 million 54.7 thousand tons, steel by 65.4%, to 2 million 466.9 thousand tons, and pig iron by 35.3%, to 2 million 718.9 thousand tons.

“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.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).

Metinvest Holding LLC is the management company of Metinvest Group.

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“Zaporizhstal” blows up blast furnace No. 2 after UAH 85 mln repair

Zaporizhzhia-based Zaporizhstal Iron and Steel Works is blowing up blast furnace No. 2 after a short-term third-degree overhaul.

According to the company on Wednesday, the overhaul lasted around the clock for six days. BF-2 will be blown up until the end of this week. The plant allocated more than UAH 85 million to upgrade the blast furnace.

“The specialists of Zaporizhstal’s blast furnace shop and engineering service, together with the specialists of Metinvest-Promservice and Zaporozhogneupor, have fully completed the planned work on the second blast furnace upgrade. The overhaul was preceded by a thorough preparatory stage, which made it possible to reduce the repair time by a day,” said Roman Slobodianiuk, CEO of the enterprise.

In total, about 200 specialists from the plant and contractors worked at the site. The main works performed include replacement of the backfill machine, repair of the foundry equipment, hydraulic and lubrication systems, repair of metal structures and railways of the bunker overpass, as well as maintenance of the aspiration systems of the production unit.

The main goal of the BF-2 overhaul is to increase equipment reliability and sustainability of the blast furnace production process and improve product quality, the press release explains.

It is also reminded that during the full-scale war, Zaporizhstal allocated more than UAH 1.2 billion to upgrade production equipment and treatment facilities operating at the complex. The main focus was on maintaining and upgrading equipment to ensure its reliable operation in unforeseen conditions.

As reported earlier, in January-April 2024, Zaporizhstal increased its rolled steel output by 59.1% compared to the same period in 2023, up to 844.8 thousand tons from 530.9 thousand tons, steel by 56.1%, to 1 million 9.3 thousand tons, and pig iron by 46.5%, to 1 million 50.4 thousand tons.

“In 2023, Zaporizhstal increased its rolled products output by 57.2% compared to 2022, up to 2 million 54.7 thousand tons, steel by 65.4%, up to 2 million 466.9 thousand tons, and pig iron by 35.3%, up to 2 million 718.9 thousand tons.

“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.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).

Metinvest Holding LLC is the management company of Metinvest Group.

“Zaporizhstal” increased rolled steel output by 59%

In January-April of this year, Zaporizhstal Iron and Steel Works increased its rolled steel output by 59.1% year-on-year to 844.8 thousand tons from 530.9 thousand tons.

According to the company, steel production during this period increased by 56.1% to 1 million 9.3 thousand tons, and pig iron production by 46.5% to 1 million 50.4 thousand tons.

In April, Zaporizhstal produced 265 thousand tons of iron, 278.4 thousand tons of steel, and 229.4 thousand tons of rolled products.

As reported earlier, in 2023, Zaporizhstal increased its rolled steel output by 57.2% compared to 2022, to 2 million 54.7 thousand tons, steel by 65.4%, to 2 million 466.9 thousand tons, and pig iron by 35.3%, to 2 million 718.9 thousand tons.

“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.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).

Metinvest Holding LLC is the management company of Metinvest Group.

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“Zaporizhstal” intends to improve quality of steel products

Zaporizhstal Iron and Steel Works intends to implement a number of measures to improve the quality of rolled metal products in the near future.

According to the company, Zaporizhstal hosted Metinvest’s Customer Focus Conference, where representatives of the company’s relevant departments and enterprises discussed projects to improve the quality of steel products.

“Zaporizhstal was not chosen as a venue for the conference by chance, as today the plant is one of the key metal producers in Ukraine. In fact, by the end of 2023, every second ton of Ukrainian steel was produced at Zaporizhstal. This demonstrates the scale and role of the enterprise for the national mining and metals industry, but at the same time requires even greater responsibility from Zaporizhzhia steelmakers in terms of quality and customer focus,” the company said in a statement.

It is also specified that the conference resulted in a number of applied solutions to achieve and maintain consistently high quality of Zaporizhstal’s rolled steel products, which will be implemented in the near future.

As reported, Zaporizhstal has spent over UAH 1.2 billion since the start of the full-scale invasion to upgrade production equipment and wastewater treatment facilities at the complex. At the same time, in 2023, the plant invested UAH 750 million in projects to maintain the stability and reliability of the company’s main technological facilities, which is half as much as in 2022, with an investment volume of UAH 500 million.

During the full-scale invasion, the program focused on maintaining and updating equipment to ensure its reliable operation in unforeseen conditions.

In 2024, Zaporizhstal plans to implement a capital investment program totaling about one billion hryvnias. The program is aimed at maintaining and modernizing equipment, implementing functional programs for occupational health and safety, information technology, and social sphere.

“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 around the world.

“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management PrJSC (71.24%) and Smart Holding Group (23.76%).

Metinvest Holding LLC is the management company of Metinvest Group.

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