Exclusive Oleksandr Dunaysky: «Infrastructure reconstruction is a driver of the steel structures market»

Last year, demand for road steel structures decreased, but increased for structures for energy and agricultural facilities

The huge need to restore the infrastructure damaged and destroyed by the war and the increase in industrial construction ensure that Ukrainian steel producers will not be left without work. In an interview with GMK Center, Olexander Dunaysky, Director of Metal Invest, spoke about the current situation on the steel structures and hot-dip galvanizing market.

Metal Invest specializes in the production of steel structures and hot-dip galvanizing services. What were the results in these areas in 2024? Did the company manage to reach its pre-war performance?

– Despite the wartime conditions, our production of steel structures increased by about 28% last year and amounted to about 4.5 thousand tons. The volume of hot-dip galvanizing services increased by 18% to more than 12 thousand tons. Thus, we have managed to exceed the figures for 2021.

In general, the market is now showing an upward trend, but, unfortunately, it is still far from the pre-industrial period. Last year, the utilization rate of our hot-dip galvanizing line was approximately 50%, and that of steel structures production was 80%.

What is the current situation in the Ukrainian steel structures market?

– Recently, the steel structures market has grown significantly, meaning that the dynamics are very positive. This is primarily due to the restoration of damaged infrastructure in all frontline areas and in regions where hostilities took place and new construction projects. Our statistics show that, in terms of industry, the demand for road steel structures has significantly decreased, while demand for steel structures for energy facilities and the agricultural sector has increased. But on the supply side, it is falling due to a decrease in production volumes due to mobilization.

Has the company experienced a decline in demand for steel structures for the energy sector due to problems with financing programs for the creation of protective structures for power facilities?

– We did not experience any problems with demand, but we did experience problems with financing for the products supplied under the programs to create protective structures. As of today, the problem has not yet been resolved, but we are working on it. We hope that this year the government will allocate the necessary funds to restore critical infrastructure, including the transportation network and energy facilities damaged by the hostilities.

What’s happening in the Ukrainian hot-dip galvanizing market now?

– Similar to the steel structures market, demand is growing, driven by the reconstruction of infrastructure facilities. Key reconstruction projects include transport infrastructure (roads and bridges), housing and social infrastructure (housing for internally displaced persons, educational and medical facilities). The most active reconstruction is taking place in Kharkiv, Chernihiv, Dnipro and Zhytomyr regions.

It is worth noting that competition in the hot-dip galvanizing market is quite high and is likely to increase further. According to our information, two hot-dip galvanizing plants are planned to be opened in Ukraine in the near future – in the northern and southern regions.

What are the current challenges facing the metalworking business in Ukraine?

– The main problems of our industry include the following:

• personnel problems – a shortage of workers, both skilled and lower-skilled, and the outflow of labor abroad due to the war;
• a significant reduction in domestic rolled steel production, as many steel mills have been affected by the hostilities;
• currency fluctuations affect the cost of imported rolled steel and complicate cost planning and pricing;
• high cost of transportation of imported rolled steel products;
• rising electricity costs for industrial enterprises;
• limited access to loans and investments for equipment modernization.

However, despite the difficulties, our businesses continue to adapt to the new realities and look for new markets.

The shortage of workers has already become a national problem. How does the company address the staff shortage?

– The staffing situation is extremely difficult, with shortages in all departments of the company – this is one of our main problems. We are short dozens of people, from loaders to engineering and technical specialists.

To address the staff shortage, we focus on hiring categories of people who are not subject to mobilization and actively cooperate with educational institutions. We are also improving working conditions, in particular by providing competitive salaries, additional benefits and creating a favorable working environment.

You mentioned the need for imported rolled steel. What foreign steel products does the company use for its production needs?

– We buy imported rolled steel products: angles, sheets, channels.

Does Metal Invest have any plans to expand its business?

– Speaking of production expansion plans, our company is currently focused on several key areas: modernization of technological equipment, purchase of new equipment and optimization of production processes. In particular, this year we purchased additional equipment for processing angles, which will allow us to increase our production capacity by up to 50%.

What prospects do you see for your business areas in 2025?

– We are seeing an increase in demand for both of our production lines. This is due to the plans for large-scale infrastructure restoration, including the construction and repair of roads, bridges, industrial and energy facilities. Such projects will require a significant amount of steel structures with anti-corrosion coatings. We are optimistic about our workload in 2025 and plan to increase production by 15-20%.