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 ths tonnes

Staff and wages

Number of employees 2955
Average wage* UAH 167,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

9080706050403020100
2012 126,9 kt2012
2013 204,2 kt2013
2014 226 kt2014
2015 78,2 kt2015
2016 122,4 kt2016
2017 130,0 kt2017
2018 124,0 kt2018
2019 145.2 kt2019
2020 86,5 kt2020
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
2018 39.3 kt2018
2019 37.0 kt2019
2020 36,3 kt2020
80706050403020100
2013 29,1 kt2013
2014 60 kt2014
2015 52,2 kt2015
2016 60,9 kt2016
2017 54,7 kt2017
2018 75.4 kt2018
2019 62.6 kt2019
2020 32,9 kt2020
876543210
2012 14,7 kt2012
2013 8,7 kt2013
2014 8,5 kt2014
2015 6,4 kt2015
2016 8,1 kt2016
2018 7.4 kt2018
2019 6.1 kt2019

Indicative sales structure by products in 2020

Indicative sales structure by markets in 2020

* structure of sales volumes, metric tons

Financial performance, $ million

20132014201520162017201820192020
Sales281.4328.9232.0211.2281.7244235199
EBITDA 16.6 38.3 -2.2 15.9 79.65.0-19.531
EBITDA margin 5.9% 11.7% -1.0% 7.5% 28.3%2.24%-8.3%15.8%
Net income -15.9 5.9 -7.1 6.8 62.04.0-23.225
Net income margin -5.6% 1.8% -3.1% 3.2% 22.0%1.69%-9.9%12.7%
CAPEX 4.0 2.0 1.5 0.3 0.72.0n/a4

Key facts

2020

Zaporizhzhia ferroalloy plant in 2021 plans to invest UAH 110 million, of which UAH 8.7 million for development projects, and UAH 7.5 million for environmental projects.

2019

Zaporizhzhia ferroalloy plant installed an automated system of technological process control at the smelter furnace No. 34. This system ensures both automatic and manual production. The hint algorithm enables making a decision and fix problems at the earliest.

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

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