Business news from Ukraine

Business news from Ukraine

Zaporizhstal has reduced production of rolled products by 57%

Zaporizhzhya Iron and Steel Works “Zaporozhstal” in January-October of this year reduced the production of rolled products by 57% compared to the same period last year – to 1 million 172.2 thousand tons from 2 million 725.4 thousand tons.
According to the information of the enterprise, steel production during this period decreased by 58.5% – to 1 million 334.8 tons from 3 million 216.2 thousand tons, pig iron – by 52.3%, to 1 million 723.8 thousand tons from 3 million 613.4 thousand tons.
In October this year, the steel plant produced 157 thousand tons of pig iron, 121.8 thousand tons of steel, shipped 101.3 thousand tons of rolled products.
“The decline in production compared to the same period last year is associated with a shortage of raw materials and logistical problems caused by full-scale military operations on the territory of Ukraine. In addition, due to massive missile attacks on energy infrastructure facilities and, as a result, the resulting shortage of power in the energy system The plant has reduced production, thus reducing the consumption of purchased electricity,” the press release explains.
At the same time, it is recalled that in connection with the aggravation of hostilities in the region since the beginning of March, the Metinvest group has transferred part of the Zaporizhstal equipment to the hot conservation mode. At the end of March, the plant partially resumed the work of the cold rolling shop for the production and shipment of cold rolled coils to the European consumer. A month after the forced stop, he took the equipment out of conservation and partially resumed production. Since April 2022, Zaporizhstal has been operating at an average of 50% of its capacity.
As reported, in 2021 Zaporizhstal maintained the production of rolled products at the level of 2020 – 3.204 million tons, reduced steel production by 0.1% – to 3 million 778.25 thousand tons and increased pig iron – by 0.1%, to 4 million 473.5 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. 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.
The main consumers of products are manufacturers of welded pipes, enterprises of automotive, transport, agricultural engineering, manufacturers of household appliances.
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.

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“Zaporizhstal” in 8 months. reduced rental production by 56%

In January-August of this year, the Zaporizhia metallurgical plant “Zaporizhstal” reduced the production of rolled products by 56.3% compared to the same period last year – to 981.6 thousand tons.
According to the company’s information on Friday, steel smelting during this period decreased by 58.3% – to 1 million 106.1 thousand tons, iron – by 51.7%, to 1 million 418.2 thousand tons.
In August of this year, the steel mill produced 145.6 thousand tons of pig iron (36.4% by August-2021), 94.4 thousand tons of steel (27.8%), 74.7 thousand tons of rolled steel (26.6% ) ).
“The decrease in the level of production compared to the same period last year is related to the shortage of raw materials and logistical problems caused by full-scale military operations on the territory of Ukraine,” the press release explains.
At the same time, it is recalled that in connection with the escalation of hostilities in the region, since the beginning of March, the “Metinvest” group has transferred part of the equipment of the “Zaporizhstal” plant to hot preservation mode. At the end of March, “Zaporizhstal” partially resumed the operation of the cold-rolled shop for the production and shipment of cold-rolled coils to the European consumer. A month after the forced shutdown, the plant took the equipment out of conservation and partially resumed production. Since April 2022, the plant has been operating at an average of 50% of its capacity.
As reported, Zaporizhstal in 2021 kept the production of rolled products at the level of 2020 – 3.204 million tons, reduced steel production by 0.1% – to 3 million 778.25 thousand tons and increased pig iron – by 0.1%, to 4 million 473.5 thousand tons.
“Zaporizhstal” is one of the largest industrial enterprises of Ukraine, the products of which have a wide demand among consumers both in the domestic market and in many countries of the world. The plant specializes in high-quality steel g/k roll, g/k sheet, cold-rolled sheet, h/k roll made of carbon and low-alloy steels, as well as steel strip, black tin, bent profile.
The main consumers of the products are manufacturers of welding pipes, enterprises of automobile, transport, agricultural engineering, and manufacturers of household appliances.
“Zaporizhstal” is in the process of integration into the “Metinvest” group, the main shareholders of which are PJSC “System Capital Management” (71.24%) and the group of companies “Smart-holding” (23.76%).
“Metinvest Holding” LLC is the management company of the “Metinvest” group.

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ZAPORIZHSTAL IMPROVES QUALITY OF PRODUCTS DUE TO TECHNOLOGY IMPROVEMENT, TO REDUCE DEFECTS BY 15-30%

Zaporizhstal is improving the quality of its metal products due to the improvement of the production process technology.
According to the enterprise, in particular, new conditions have been established in the steelmaking shop for the steelmaking technology. In June, metallurgists began smelting metal on their own carbon, which makes it possible to stabilize metal in molds, as well as reduce the risks of producing metal with increased oxidation in molds. In turn, this will also save on deoxidizers fed into the ladle.
“We found out that this is what has a direct impact on whether we get certain types of defects when rolling metal. We conducted several test melts of steel and decided to apply this technology to some steel grades,” Andriy Riaznov, head of the technical control department, explained.
The use of this steelmaking technology has led to a significant reduction in the formation of defects. This decision is expected to lead to a reduction in the number of nonconforming products by approximately 15-30%.
“So far, we have just started working on this technology, but we are already seeing a positive result. According to preliminary data, the number of nonconforming products was reduced by 15% in June,” Riaznov said.
Zaporizhstal is one of the largest industrial enterprises in Ukraine, the products of which are in great demand among consumers in the internal market and in many countries of the world. The plant specializes in high quality hot-rolled steel, hot-rolled sheet, cold-rolled sheet, cold-rolled coil of carbon and low-alloy steels, as well as steel tape, black sheet, and a bent profile.

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ZAPORIZHSTAL CUTS PRODUCTION OF ROLLED PRODUCTS BY 47% IN H1 2022

In January-June 2022, Zaporizhstal reduced output of rolled products by 46.6% compared to the same period last year, to 839,400 tonnes.
According to the enterprise on Friday, steel production decreased by 53.6% over six months of 2022, to 922,300 tonnes, and cast iron – by 48.1%, to 1.134 million tonnes.
In June of this year, the steel plant produced 146,900 tonnes of cast iron (43.1% compared to June 2021), 69,600 tonnes of steel (21.2%), 83,000 tonnes of rolled metal (50.2%).
“The decline in production compared to the same period last year is associated with a shortage of raw materials and logical problems caused by full-scale hostilities on the territory of Ukraine,” the press release explains.
At the same time, it is recalled that in connection with the aggravation of hostilities in the region since the beginning of March, Metinvest Group has transferred part of the equipment of Zaporizhstal to the hot conservation mode. At the end of March, Zaporizhstal partially resumed the work of the cold rolling shop for production and shipment of cold rolled coils to the European consumer. A month after the forced shutdown, the plant took the equipment out of conservation and partially resumed production. Since April 2022, the plant has been operating at an average of 50% of its capacity.
It is also reported that the Ukrainian defenders received another batch of ammunition and drones from Zaporizhstal of Metinvest Group. So, over the past two weeks, Zaporizhstal has handed over 2,100 body armor, 1,000 Kevlar helmets, as well as three reconnaissance drones to the servicemen of the National Guard of Ukraine and the territorial defense, who protect Zaporozhia and Dnipropetrovsk regions.
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.

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ZAPORIZHSTAL CONTINUES TO WORK AT 50% OF ITS CAPACITY, EXPERIENCES DIFFICULTIES WITH LOGISTICS – CEO

Zaporizhstal metallurgical plant, part of Metinvest, after a partial resumption of production, continues to operate at 50% of its capacity, Oleksandr Myronenko, general director of Zaporizhstal, said in an interview with the Segodnya newspaper.
According to him, there are currently problems with logistics – the supply of raw materials and the shipment of finished products.
At the same time, it is noted that due to significant problems with logistics and overstocking of railway crossings, Zaporizhia metal enterprises are forced to consider options for reducing production.
“Problems with logistics have not been resolved. We have significant problems with the shipment of our products to customers in the EU. Before the war, all our routes passed through ports, but they are not yet available. Now we have significant overstocking at border crossings in western Ukraine. All this forces us to consider the option of reducing production, because our products simply cannot be transported across the border,” Myronenko explained.
He noted that the leaders of the enterprise are doing everything possible to maintain the volume of exports and the inflow of foreign currency into the country, in particular, they provide additional equipment for reloading products at the border with the European Union. In addition, together with the Cabinet of Ministers, they are looking for ways to solve problems with logistics.
Earlier, other enterprises of the country announced problems with logistics.
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.

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ZAPORIZHSTAL MASTERS NEW PRODUCTION OF CONSTRUCTION PRODUCT FOR EU

Zaporizhia metallurgical plant Zaporizhstal has mastered the production of double-mass cold-rolled coil without a welded seam – the first batch of a new type of rolled metal for the construction industry has already been shipped.
According to the information of the company on Friday, the plant mastered the first new type of product this year – a cold-rolled coil of double mass without a seam with dimensions of 1.5-2.0×1370-1500 mm. The enterprise has already shipped 3,600 tonnes of a new type of rolled metal for the construction industry.
The company said that a request had been received from potential consumers from Europe.
“They wanted rolls of the fourth type of rolled products with a width of 1500 mm, but at the same time the weight of the rolls would be at least 9 tonnes. We had already produced similar products before, but it was necessary to review the technology. We almost immediately began to develop a new type of rolled products,” Deputy Head of the cold rolling shop (CHP) in charge of production Serhiy Kuzmenko, who is quoted by the company’s press service, said.
He added that the new technology was developed quickly: 14 days passed from the client’s request to the production of the first trial batch of rolls.
At the same time, earlier the company produced rolls weighing up to 8 tonnes and 3.8 mm thick. To obtain such a coil, two lightweight coils were welded in the BTA-4 line in the cold rolling shop and coils with seams were obtained. Now the production technology has changed. New coils are produced in the hot rolling shop, and their thickness is changed in the cold rolling shop. Thanks to the new production technology, it was possible not only to master a new type of product, but to save about UAH 1 million due to its implementation.
In addition, the efficiency of the pickling unit and the efficiency of the rolling mill have increased. Also, due to the fact that products are packaged not in small rolls up to 8 tonnes, but in large ones, up to 16 tonnes, the cost of packaging materials is almost halved, the company said.

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