Dniprovskyi Iron and Steel Works

Dniprovskyi Iron and Steel Works (DMK) is an integrated steelmaking company. It is a member of the Industrial Union of Donbas corporation. Since 2017, DMK has been supplying part of its products to Metinvest B.V. for resale to repay its debt for shipped iron ore.

DMK produces semi-finished products, including pipe billets for the manufacture of oil and gas tubular goods, as well as long products. DMK specialized in square billets (exported to countries of the Middle East and North Africa), wire rods (exported to the EU countries) and pig iron (key importer is the United States).

DMK is the only Ukrainian producer of rolled axial billets for railway transport, Larsen steel sheet piles, contact rails for the underground, and steel strips for aluminum electrolyzers.

Location: Kamianske, Dnipropetrovsk oblast, Ukraine
Shareholders: The Industrial Union of Donbas
Markets: Algeria, Egypt, the U.S.
Products: Square billets, wire rods, pig iron

Production capacity

Production of iron ore agglomerate 6 sinter machines, 5,600 thousand tons
Blast-furnace production 3 blast furnaces, 4,350 thousand tons
Production of steel 2 BOFs, 3,850 thousand tons
2 ladle furnaces
bloom 6-jet continuous casting machine
2 long 7-jet continuous casting machines
Manufacture of rolled products Tubular billet shop: cage 1150, tubular billet mill 900*750*3
Rail and beam shop: cage 1050, rail and beam mill 925, billet cage 925
Long products shop: medium rebar mill 400/200 (bar line) and finished mill — rebar and wire mill 200 (coiled products)
Axis rolling shop: cross rolling mill 250, 2 ball rolling mills 30–80

Staff and wages

Number of employees 8851
Average wage* UAH 177,000 per annum
Workforce productivity 250.9 tons of steel per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

5000450040003500300025002000150010005000
2012 4986 kt2012
2013 4650 kt2013
2014 4109 kt2014
2015 3956 kt2015
2016 3307 kt2016
2017 1995 kt2017
2018 3894 kt2018
2019 2890 kt2019
40003500300025002000150010005000
2012 3016 kt2012
2013 2637 kt2013
2014 2343 kt2014
2015 2260 kt2015
2016 1957 kt2016
2017 1328 kt2017
2018 2456 kt2018
2019 2092 kt2019
40003500300025002000150010005000
2012 3132 kt2012
2013 2927 kt2013
2014 2528 kt2014
2015 2325 kt2015
2016 1967 kt2016
2017 1359 kt2017
2018 2409 kt2018
2019 2221 kt2019

Indicative sales structure by products in 2019*

Indicative sales structure by countries in 2019*

* structure of sales volumes, metric tons

Financial performance, $ million

 2013201420152016201720182019
Sales1483177620891768193011521001
EBITDA-193-29-24-274-1528-1028-541
EBITDA margin -13.03% -1.66% -1.14% -15.49% -79.19%-89.24%-54.0%
Net income-232-234-174-340-1653-1059-579
Net income margin -15.61% -13.15% -8.31% -19.21% -85.64%-91.89%-57.8%
CAPEX4421211334.84

Key facts

2020

Dniprovskyi Iron and Steel Works invested $4 million in a new casting stand for the continuous casting machine No. 2.

2019

In 2016–2019, Dniprovskyi Iron and Steel Works invested ₴1.5 billion in environmental projects.

In October 2019, due to a crisis on the markets, Dniprovskyi Iron and Steel Works postponed for a month the launch of facilities previously stopped for repair: the blast furnace No. 9 and the blast furnace No. 12 in the blast furnace shop, as well as the BOF No. 1 and the continuous casting machine No. 3 in the BOF shop.

July 2019

DMK plans to invest about $10 mln in the project of blast furnace #9 overhaul. Blast furnace will be stopped during 55 days since 18 of July 2019.

2019

DMK plans to boost steel production to 3 mln tonnes in 2019, according to the company management. It will be caused by the modernization of 3 continuous casting machines.

DMK sold its blast-furnaces to  Dniprovskyi Coke Plant (Metinvest Holding), according to the media.

DMK plans to build new blast furnace till 2021, according to the company management.

In 2019

Funds were allocated for developing design specifications and estimates for the environmental project “Reconstruction of final gas purification systems for sintering zones of the sintering shop.” The project is scheduled to be implemented in 2019–2021.

In 2018

Waste heat boilers (WHBs) of two BOFs were overhauled, and new gas purification systems were installed. As a result, SPM emissions were reduced from 142 gram/cubic meter to 50 gram/cubic meter.

In 2019

Dniprovskyi Iron and Steel Works plans to launch six new types of products, including wire rods for ropes and welding wire, rolled rebar of six standard sizes, and continuous casting billet of SG2 steel.

Sources: websites of the companies, media outlets