Metinvest, the largest Ukrainian mining and metallurgical holding, is forced to reduce the implementation of its investment program in 2019 due to the severe global crisis over the past ten years. According to a company’s report, metallurgical industry is entering the toughest global crisis in ten years. Many metallurgical companies in the world are already operating with losses and are forced to cut production and personnel.
“Given a lack of financial resources and disappointing forecasts regarding further steel prices, Metinvest Group has developed an action plan that will help overcome the difficult economic situation with minimal losses,” the report says.
It says that Metinvest is forced to reduce the implementation of the investment program in 2019: the implementation of certain projects, except for critical ones provided for by the technological strategy, and projects with significant environmental effects will be suspended. In addition, an optimization program will be implemented to reduce fixed and administrative costs.
The group is forced to suspend staff recruitment for existing vacancies and limit the recruitment of people to the position of employees who have decided to quit, with the exception of critical professions. The matter does not concern mass cuts in production: optimization measures will concern, first of all, the administrative staff and the management company. At the beginning of 2020, administrative staff will be reduced by 30%. At the same time, employment programs for employees will be developed jointly with the city authorities.
Ukrainian metallurgical enterprises in June 2019 reduced steel production by 3% compared to the same period in 2018, to 1.659 million tonnes, thus remaining on the 13th position in the ranking of 64 major global manufacturers of these products, compiled by the World Steel Association (Worldsteel). An increase in steel production in half of the top ten countries, except for South Korea, Russia, Germany, Turkey and Brasil, was recorded in June 2019 compared to June 2018.
The top ten producer countries in June are as follows: China (87.533 million tonnes, an increase of 10%), India (9.336 million tonnes, an increase of 4%), Japan (8.789 million tonnes, an increase of 0.4%), the United States (7.276 million tonnes, an increase of 3.1%), South Korea (5.958 million tonnes, a decrease of 2.6%), the Russian Federation (5.875 million tonnes, a decrease of 2.6%), Germany (3.405 million tonnes, a drop of 5.8%), Brazil (2.823 million tonnes, a decrease of 3.1%), Turkey (2.698 million tonnes, a decrease of 11%), and Iran (2.165 million tonnes, an increase of 6.1%).
They are followed by Italy (2.086 million tonnes, a drop of 2.5%), Taiwan (China, 1.960 million tonnes, a decrease of 0.3%) and Ukraine (1.659 million tonnes, a drop of 3%).
Overall, in June 2019, 64 countries produced 158.978 million tonnes of steel, which is 4.6% more than in June 2018.
Through January-June 2019, sixty-four countries produced 925.064 million tonnes of steel, which is 4.9% more than in the same period last year.
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