Ilyich Iron and Steel Works of Mariupol

Ilyich Iron and Steel Works of Mariupol is an integrated steel company. Sinter plant of Ilyich Iron and Steel Works of Mariupol is the largest in Europe. The company sells part of agglomerate to Azovstal Iron and Steel Works. Its main products are carbon flat products, low-alloyed and alloyed steels for various purposes. Heavy plates, produced by Ilyich Iron and Steel Works of Mariupol, are used in pipe production and shipbuilding; cold-rolled and galvanized plates — in cold forging and profiled sheeting production. The company also produces welded pipes for construction. Ilyich Iron and Steel Works of Mariupol is the largest European producer of cold-rolled and galvanized plates. Ilyich Iron and Steel Works of Mariupol leases the property complex of state-run Ukrmekhanobr to produce sinter ore. The company is part of Metinvest Holding.

Location: Mariupol, Donetsk oblast, Ukraine
Shareholders: Metinvest Holding
Markets: United States, Italy, Poland, Turkey
Products: Pig iron, heavy and hot-rolled sheet products

Production capacity

Sinter plant 12 sinter machines, 12,000 thousand tons
Blast-furnace production 4 blast furnaces, 4,300 thousand tons
Production of steel 3 BOFs, 3,700 thousand tons
Manufacture of rolled products Slabs 1150
Rolling mill 1700
Rolling mill 3000
Sheet rolling mill 4500
Cold rolling shop
Electric weld pipe shop
Pipe rolling shop

Staff and wages

Number of employees 15,302
Average wage* UAH 164,000 per annum
Workforce productivity 211 tons of steel per annum

Charts and tables

Production results, thousand tons

8007006005004003002001000
2012 596 kt2012
2013 568 kt2013
2014 322 kt2014
2015 768 kt2015
2016 479 kt2016
2017 465 kt2017
2018 542 kt2018
20000150001000050000
2012 10703 kt2012
2013 13205 kt2013
2014 11674 kt2014
2015 9520 kt2015
2016 9066 kt2016
2017 10240 kt2017
2018 11127 kt2018
6000500040003000200010000
2012 4506 kt2012
2013 5055 kt2013
2014 4209 kt2014
2015 3555 kt2015
2016 3816 kt2016
2017 4061 kt2017
2018 4510 kt2018
6000500040003000200010000
2012 5161 kt2012
2013 5044 kt2013
2014 3546 kt2014
2015 2646 kt2015
2016 2737 kt2016
2017 3097 kt2017
2018 3242 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
Sales298923891447139421292908
EBITDA-18823037110100291
EBITDA margin -6.3%9.6%2.6%7.9%4.7%10%
Net income-36638-73-6-31122
Net income margin -12.3%1.6% -5.0% -0.4% -1.5%4.19%
CAPEX59282761133187

Key facts

2019

Metinvest Holding attracted €34 mln loan from Austrian bank ODDO BHF Aktiengesellschaft with guaranties of Austrian Oesterreichische Kontrollbank Aktiengesellschaft. The aim of the loan – reconstruction of the sheet rolling shop 1700 on Ilyich Iron and Steel Works of Mariupol.

Ilyich Iron and Steel Works of Mariupol and French company Air Liquide will build air separation plant with hourly capacity 25 ths m³ of oxygen. CAPEX to the project amounted $78 mln. As a result energy expenses will cut by 20%.

Ilyich Iron and Steel Works of Mariupol will made additional $20 mln environmental CAPEX during  the blast furnace #3 modernization project.

To 2020

Ilyich Iron and Steel Works of Mariupol will reconstruct the sinter plant to comply with the international environmental standards on emissions. Total investment in the project will amount to $220 million. By the end of 2020, dust emissions will decrease by 90% and sulfur by 43%.

In December 2018

Ilyich Iron and Steel Works put into operation the continuous casting machine No. 4. The project will increase production of semi-finished products by 30%, reduce the dust content in flue gases below European standards, and reduce raw materials costs. $150 million have been invested in the project.

In 2018

Ilyich Iron and Steel Works will invest $90 million in reconstruction of the sheet rolling shop 1700. The project includes installation of new equipment that will enhance the mill’s productivity, improve the quality of rolled surface, and reduce production waste during slab rolling. The project will enable the company to increase HRC maximum weight from 8 tons to 27 tons and thus to wide potential markets.

In 2016

Ukraine’s Ministry of Economy refused to extend the lease agreement between Ilyich Iron and Steel Works and the property complex of state-run Ukrmekhanobr. Ukrmekhanobr is a state-owned mining and processing plant, the property of which has been leased out to the company since 2006 and which has a special permit to mine the deposit. A trial was ongoing over the extension of the lease agreement in 2016–2018.

In 2015

Ilyich Iron and Steel Works fully put an open-hearth shop out of operation.