Business news from Ukraine

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

4 September , 2022  

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.