Zaporizhzhia Ferroalloy Plant

Zaporizhzhia Ferroalloy Plant (ZFP) is one of the three Ukrainian producers of ferroalloys. ZFP produces manganese and silicon alloys (ferrosilicomanganese, ferrosilicon, ferromanganese), used in the steel sector for deoxidation and alloying of steel, alloys and pig iron. It purchases raw materials from Ukrainian companies, including Pokrov GOK, Marganets GOK, Azovstal, Avdiyivka Coke Plant, Novotroitsk Mine Group and others. ZFP exports its products directly and through intermediaries. It produces part of products on a tolling basis.

All electric arc furnaces are equipped with dust collection units. ZFP uses part of ferroalloy gas instead of natural, and has closed loops of technical water supply.

ZFP is the only producer of manganese metal in Ukraine.

Location: Zaporizhzhia, Ukraine
Shareholders: The Privat Group
Markets: Ukraine, Turkey, Italy
Products: Ferrosilicomanganese FeSiMn 17, ferrosilicon FeSi 65

Production capacity

Production of ferroalloys 31 electric arc furnaces, 347

Staff and wages

Number of employees 3,043
Average wage* UAH 147,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

80706050403020100
2012 126,9 kt2012
2013 204,2 kt2013
2014 226 kt2014
2015 78,2 kt2015
2016 122,4 kt2016
2017 130,0 kt2017
6050403020100
2012 54,6 kt2012
2013 48,5 kt2013
2014 57,5 kt2014
2015 55,6 kt2015
2016 46,9 kt2016
2017 43,1 kt2017
6050403020100
2013 29,1 kt2013
2014 60 kt2014
2015 52,2 kt2015
2016 60,9 kt2016
2017 54,7 kt2017
6050403020100
2013 23,6 kt2013
2014 60,9 kt2014
2015 52,2 kt2015
2016 60,9 kt2016
2017 54,7 kt2017
876543210
2012 14,7 kt2012
2013 8,7 kt2013
2014 8,5 kt2014
2015 6,4 kt2015
2016 8,1 kt2016

Indicative sales structure by products in 2018

Indicative sales structure by markets in 2018

* structure of sales volumes, metric tons

Financial performance, $ million

 201320142015201620172018
Sales281.4328.9232.0211.2281.7244
EBITDA 16.6 38.3 -2.2 15.9 79.65.0
EBITDA margin 5.9% 11.7% -1.0% 7.5% 28.3%2.24%
Net income -15.9 5.9 -7.1 6.8 62.04.0
Net income margin -5.6% 1.8% -3.1% 3.2% 22.0%1.69%
CAPEX 4.0 2.0 1.5 0.3 0.72.0

Key facts

In 2019

ZFP plans to invest UAH 164 million. About 85% of CAPEX is aimed on maintenance works.

In 2018

According to ZFP’s top officers, the average monthly volume of electricity consumed by the company was 135 million kWh. The share of electricity costs in the structure of production costs was around 50%.

ZFP melting shops use the layered casting of fire-liquid slags technology. This technology allows generating raw material instead of waste — oxide aluminosilicate (OAS), subsequently used as remelting impurities and as raw materials for the production of construction materials.

2016

ZFP actively uses river transport to deliver its products. In 2016, the share of river shipments in the total sales volume was 16%. ZFP also uses railway and automobile shipments.

Sources: websites of the companies, media outlets