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Metinvest Cuts Use of its Facilities by Over 40% Due to Destruction, Number of Restrictions Caused by War

 

 

June 9, 2022 - Metallurgical and mining group Metinvest has reduced the use of capacities of its enterprises by more than 40% in total due to destruction, logistical problems and other restrictions caused by Russia's military aggression in Ukraine, company's CEO Yuriy Ryzhenkov said in his online speech at the US Steel Success Strategies 2022 conference.


"The use of the capacities of the group's total potential has been reduced by more than 40% due to the war," the general director said.

 


The company's head stated that the full-scale Russian military invasion of Ukraine had a significant impact on the enterprises of Metinvest Group, since they are located near the front line and in the war zone, in particular in Mariupol. Employees have to work in conditions of constant air alerts and evacuate to bomb shelters. Due to the constant shelling of Avdiyivka Coke and Chemical Plant, employees wear bulletproof vests and helmets all the time.


According to his presentation at the conference, at present the capacities of Pivnichny Mining are used by 23%, Central Mining – by 83%, Inhulets Mining – by 32%, and Pivdenny Mining – by 24%. The export volume of mining and processing plants is limited by logistics.


Illich Iron and Steel Works and Azovstal are destroyed and do not work. The capacities of Zaporizhstal are used by 54%, Kametstal – by 74%, European plants – by 75%, and Unisteel – by 100%.


The percentage of capacity utilization of coke and chemical plants: Avdiyivka Coke and Chemical Plant – idle, Zaporozhkoks – 89%, Dniprovsky Coke and Chemical Plant – 97%, Pivdenkoks – 98%, coal mines: Pokrovske Coal – 100%, UCC (the USA) – 86% . There are logistical restrictions on the delivery of coal to coke and chemical plants, there is also an outflow of personnel and a shortage of miners at Pokrovske Coal due to the proximity of hostilities.


"The decline in production volumes led to significant changes in the structure of the steel product portfolio and the direction of sales – they were reoriented from distant markets to the markets of Central and Eastern Europe. Metinvest is restoring supply chains," the CEO explained, adding that the group already has experience in managing enterprises in a crisis situation during the military conflict in Donbas in 2014-2017, which allows preparing enterprises for hostilities, carrying out proper conservation and logistics.