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Dnipro Metallurgical Plant

Dnipro Metallurgical Plant (DMZ) is an integrated company, a member of the DCH Group.

It produces semi-finished products and long products: channels, angles and rails.

Its main products are square billets (exported to Turkey and Egypt), channels (wide export geography: countries of Europe, Asia, Africa) and pig iron (exported mainly to Turkey).

Location: Dnipro, Dnipropetrovsk oblast, Ukraine
Shareholders: DCH Steel
Markets: Egypt, Turkey, Poland
Products: Square billets, channels, pig iron

Production capacity

Coke production 4 batteries, 1,040 thousand tons
Blast-furnace production 2 blast furnaces, 1,795 thousand tons
Production of steel 3 BOFs, 1,230 thousand tons
Manufacture of rolled products Rolling shop No. 1: blooms 1050, mill 800
Rolling shop No. 2: mill 550

Staff and wages

Number of employees 4,378
Average wage* UAH 158,000 per annum
Workforce productivity 209 tons of steel per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

8007006005004003002001000
2012 597 kt2012
2013 705 kt2013
2014 697 kt2014
2015 693 kt2015
2016 696 kt2016
2017 568 kt2017
2018 570 kt2018
2000150010005000
2012 857 kt2012
2013 977 kt2013
2014 1001 kt2014
2015 1007 kt2015
2016 1068 kt2016
2017 1017 kt2017
2018 886 kt2018
2000150010005000
2012 822 kt2012
2013 996 kt2013
2014 987 kt2014
2015 1006 kt2015
2016 1059 kt2016
2017 921 kt2017
2018 919 kt2018

Indicative sales structure by products in 2018

Indicative sales structure by countries in 2018

* structure of sales volumes, metric tons

Financial performance, $ million

 201320142015201620172018
Sales598503367394593439
EBITDA-6-181-69-2015110
EBITDA margin -1.06% -35.95% -18.84% -5.19% 2.59%25.16%
Net income-50-221-50-1390108
Net income margin -8.33% -43.90% -13.63% -3.20%15.10%24.68%
CAPEX1316951219

Key facts

2019

DCH Steel plans to invest $300 mln into the vertical integration of Sukha Balka mining and Dnipro Metallurgical Plant, that assumes building of sinter plant in Dnipro Metallurgical Plant.

2018-2019

Dnipro Metallurgical Plant plans to build new continuous casting machine and small section mill for production of rebar and wire rod. Company will rebuild coke batteries #5, 1 and 4 during 2019-2020. Overhaul of the blast furnace #3 in 2018 and blast furnace #2 in 2019 will enable company to produce 3200 tonnes of pig iron per day. Completion of the cogeneration plant construction project will allow to generate about 12.5 mln kWh electric power.

2018

Dnipro Metallurgical Plant to raise steel production volume to 961 ths tonnes (+4.5%) in 2019 and pig iron production to 955 ths tonnes (+7.7%), according to the 2018 Annual Report.

In March 2018

The DCH Group signed a contract with the Evraz Holding on the purchase of Dnipro Metallurgical Plant.

In February 2019

An automated environmental monitoring system was put into operation, including 3 environmental monitoring posts. Measurements are made to control main pollutants and meteorological parameters.

2018–2019

Dnipro Metallurgical Plant plans to reconstruct the blast furnaces 2 and 3 in 2018–2019. The estimated cost of works is $20 million. The project will increase the output and reduce emissions into the air.

In 2018–2020

Dnipro Metallurgical Plant is going to reconstruct 4 coke batteries. The amount of investment totals $20 million.

Dnipro Metallurgical Plant also plans to build a shop of continuous casting of steel (the needed investment amounts to $50 million). The shop will consist of two ladle furnaces and a five-strand continuous casting machine (CCM). It will take the plant 3 to 4 years to complete design, construction, procurement and installation of equipment.

Sources: websites of the companies, media outlets