Donetsksteel, metallurgical plant

Donetskstal Metallurgical Plant (Donetskstal MP) was established in August 2002 on the basis of the blast furnace and open-hearth shops of Donetsk Metals Plant. Donetskstal MP has two branches: the Metals Complex and Sviato-Varvarynska Beneficiation Plant.

Since 2012, after the shutdown of the open-hearth shop, the Metals Complex specialized in the production of pig iron. Sviato-Varvarynska Beneficiation Plant produces coal concentrate for coking, including premium grades, and fuel for boilers and thermal power plants. Coal is supplied from Pokrovske mine located in close proximity to Sviato-Varvarynska Beneficiation Plant.

To date, the Metals Complex is located in the non-government controlled territory.

Location: Metals Complex — Donetsk, Ukraine Sviato-Varvarynska Beneficiation Plant — Sergiyivka, Donetsk oblast, Ukraine
Shareholders: Metinvest B.V. (Netherlands), Altana Ltd (Cyprus), Misandyco Holdings Ltd (Cyprus), Treimur Investments Ltd. (Virgin Islands, United Kingdom) The Metals Compex has been nationalized by breakaway authorities and controlled by Vneshtorgservis CJSC (South Ossetia)
Markets: Benefication Plant: Ukraine Metals Complex: Russia, possible reexport to other countries Key markets until 2017 — Poland, EU Member States
Products: Pig iron, coal concentrate for coking

Production capacity

Blast-furnace production 2 blast furnaces, 1,450 thousand tons
Electric steelmaking electric arc furnace DSP-150, 1,500 thousand tons (under construction)
Benefication Plant 7,895 thousand tons of run-of-mine coal

Staff and wages

Number of employees 6,438 (2016)
6,438 (2016) UAH 93,000 per annum (2016)

* per worker before taxes

* structure of sales volumes, metric tons

Financial performance, $ million

 20132014201520162017
Sales1784892530583562
EBITDA11216293113-260
EBITDA margin6.3%18.2%17.6%19.4% -46.2%
Net income10-409-286-89-308
Net income margin0.6% -45.9% -54.0% -15.3% -54.8%
CAPEX114265125

Key facts

In 2008

The project was launched on the construction of an electric arc furnace (DSP-150). The furnace was scheduled to be put into operation in the second half of 2013. As of early August 2013, the works were 88% completed. Commissioning of the electric furnace was repeatedly postponed. The construction was never finished because of hostilities in the east of the country.

In February 2017

The blast furnace 1, the only one that operated at that time, was stopped due to lack of iron ore. In March 2017, the Metals Complex was nationalized by breakaway authorities.

In 2018

The Metinvest Group bought a stake in Donetskstal.

March 2019

According to the media, in late March 2019, Donetskstal put the blast furnace 1 into operation. Its planned average daily capacity is 1,700 tons of pig iron.

Sources: websites of the companies, media outlets