Zaporizhstal Iron and Steel Works

Zaporizhstal is a fully integrated steel company. It is one of a few world’s companies where steel is produced using open-hearth method. The company specializes in flat products: hot rolled coils and sheets, cold rolled sheets, coils of carbon and low-alloy steels, as well as steel stripes and black tin. Zaporizhstal has a sinter plant. Officially, Metinvest Holding has a 49% stake in Zaporizhstal. The company works in close cooperation with Zaporizhzhia Coke Plant and Zaporizhogneupor, a manufacturer of refractories — both controlled by Metinvest Holding.

Location: Zaporizhzhia, Ukraine
Shareholders: Metinvest Holding — 49% Companies linked to the Midland Group — 50%
Markets: Turkey, the U.S., Ukraine, countries of the Middle East
Products: Hot and cold rolled sheet products

Production capacity

Sinter plant 6 sinter machines, 6,000 thousand tons
Blast-furnace production 4 blast furnaces, 3,800 thousand tons
Production of steel 7 open-hearth furnaces and 1 double-hearth steel making unit, 4,000 thousand tons
Manufacture of rolled products Blooming shop
Hot rolling shop, 3,600 thousand tons:
- plate mill 1680
Cold rolling shops No. 1 and No. 3, 1,000 thousand tons:
- mill 2800
- 2 mills 1680
- mill 1200
- mill 1700
- 2 narrowband mills 450 and 650

Staff and wages

Number of employees 11,987
Average wage* UAH 206,000 per annum
Workforce productivity 342 tons of steel per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

2012 5389 kt2012
2013 5574 kt2013
2014 5907 kt2014
2015 6025 kt2015
2016 5643 kt2016
2017 5899 kt2017
2018 6360 kt2018
2012 3195 kt2012
2013 3219 kt2013
2014 3505 kt2014
2015 3807 kt2015
2016 3600 kt2016
2017 3795 kt2017
2018 4386 kt2018
2012 3785 kt2012
2013 3819 kt2013
2014 3957 kt2014
2015 3986 kt2015
2016 3897 kt2016
2017 3928 kt2017
2018 4107 kt2018

Indicative sales structure by products in 2018

Indicative sales structure by countries in 2018

* structure of sales volumes, metric tons

Financial performance, $ million

EBITDA margin9.0%20.4%22.5%26.4%15.1%13.83%
Net income19483183126186
Net income margin0.1%5.1%5.7%14.1%7.2%8.58%

Key facts


According to the company management, Zaporizhstal expects to finish negotiations with creditors about financing of BOF shop building, that will replace open-hearth furnace production. CAPEX to the project amounted $1.5 bln. Design works will be completed in 2020. Period of project– about 5 years.

Zaporizhstal within the framework of a pilot project of the World Bank is developing a sample system for monitoring and reporting greenhouse gas emissions. Zaporizhstal experience will help develop a scheme to calculate and account for greenhouse gas emissions for Ukrainian industrial companies, that is important in the process of implementing CO2 quotas trading system.


Zaporizhstal develops river shipments. In 2018, the company exported 670 thousand tons of cargo to Turkey, Macedonia and Serbia along the Dnieper.

In December 2018

Zaporizhstal announced the completion of reconstruction of the sinter plant, which made it possible to reduce dust emissions by 90% and sulfur oxide emissions by 50%. Also, vacuum extraction systems of each blast furnace enable dust removal up to 20 milligram per cubic meter. Since 2012, the company has invested some UAH 9 billion in environmental activities.

In 2017

The blast furnace No. 3 was reconstructed. The project was implemented in a record period of time — only 8 months. Investment in the project amounted to UAH 1.9 billion.

The company is working on replacing open-hearth furnaces with BOFs and introduction of CCM (continuous casting machine) technology. The capacity is expected to rise up to 5 million tons of steel. The project is estimated at about $1–1.3 billion. In 2018, design works were performed, and a possibility of raising funds from European banks and international financial organizations is being considered.


According to Zaporizhstal’s top management, efficiency measures from 2012 to 2018 reduced the cost of rolled products by $93 per ton.

Sources: websites of the companies, media outlets