Donetsk Electrometallurgical Plant

Location: Donetsk, Donetsk oblast, Ukraine
Shareholders: The Mechel Group Nationalized by the breakaway authorities
Markets: Russia, possible reexport to other countries
Products: Square billets

Production capacity

Electric steelmaking Main (EDP-120) and subsidiary (DSP–100NZA) electric arc steel-melting furnaces, 1,000 thousand tons
Сontinuous casting machine
Manufacture of rolled products Mill 950/900

Staff and wages

Number of employees 857 (2015)
Average wage* UAH 27,000 per annum (2015)

* per worker before taxes

Charts and tables

Production results, thousand tons

2012 505 kt2012
2013 151 kt2013
2014 19 kt2014

Indicative sales structure by products in 2018

Indicative sales structure by countries in 2018

* structure of sales volumes, metric tons

Financial performance, $ million

EBITDA margin-29.7%-71.3%-1305.9%-2445.6%-
Net income-18-66-35-12-3
Net income margin-24.3%-305.1%-7872.6%-25796.9%-

Key facts

Until 2009

The plant had been called Istil Ukraine and was a member of the Istil Group.

In 2008

Russia’s Estar Group bought the plant and other assets of the Istil Group. According to the media, the deal amounted to $1 billion. DEMP was bought for a plant-secured loan provided by Alfa-Bank. Estar could not repay the loan to the bank. That is why in August 2009, DEMP came under the control of Alfa-Bank.

In 2011

The plant was sold to the Mechel Group for $537 million to be paid until December 2018.

In 2013

The Mechel Group and Vadim Varshavsky, the owner of the Estar Group, signed a contract on the DEMP sale for EUR 2 thousand. Varshavsky was also obliged to pay off the DEMP debt worth $81 million to the Mechel Group. The deal failed.

In January 2014

Production at DEMP was completely suspended. In July 2016, the plant was nationalized by breakaway authorities. DEMP was renamed to Yuzov Metals Plant (Yuzov MP).

In October 2017

Yuzov MP was put into operation.

According to the media, Yuzov MP produced 55 thousand tons of steel within 9 months of 2018. Yuzov MP received one-off orders and performed 1–2 smelting operations a week. It exported its products to Turkey, Iran, Syria and some other countries.

According to the media, Yuzov MP was shut down in November 2018. One of the reasons was lack of scrap.

Sources: websites of the companies, media outlets