News Industry capital investment 1416 25 December 2024
Investments in support and modernization of production facilities reached UAH 8.47 billion
The volume of capital investments in the sector «Steel production, production of finished steel products, except for machinery and equipment» in January-September 2024 increased by 39.7% compared to the same period in 2023, to UAH 8.47 billion. This is evidenced by data from the State Statistics Service.
In the first quarter, investments in the production facilities of steel enterprises amounted to UAH 2.21 billion (+67.4% y/y), in the second quarter – UAH 2.85 billion (+47.7%), and in the third quarter – UAH 3.4 billion (+21.2%). Thus, there has been a gradual increase in investments since the beginning of the year. The bulk of it was in the third quarter.
Capital investments in the mining and quarrying sector in January-September reached UAH 50.03 billion, which is 3.9% less than in the same period of 2023:
- I quarter – UAH 13.27 billion (+16.3% y/y);
- II quarter – UAH 14.09 billion (-1.7%);
- III quarter – UAH 13.26 billion (-19.8%).
Total capital investment in Ukraine’s industry increased by 21.2% y/y – to UAH 133.67 billion in 9M2024. The mining and metals sector accounted for 37% or UAH 49.09 billion.
Despite all the difficulties of wartime, the Ukrainian mining and metals sector continues to invest heavily in maintaining and modernizing its facilities, being one of the largest investors in the country’s economy. The share of steel industry’s capital investments in the total industrial investment amounted to almost 10% in 2023.
According to GMK Center, in 2023, the industry reduced capital investments by 7.2% y/y – to UAH 16.6 billion, while investments in 2022 were partially realized without taking into account the military operations in January-February. In particular, investments in metallurgy increased by 3.3% y/y – to UAH 8.2 billion, but iron ore production decreased by 15.6% y/y – to UAH 8.4 billion.
Metinvest Group invested $284 million in production facilities in 2023. Of this amount, $65 million was invested in steel production and $213 million in mining. Iron ore company Ferrexpo invested $101 million and Interpipe $31 million (+48% y/y). ArcelorMittal Kryvyi Rih has invested UAH 9 billion ($217.4 million) in production over the two and a half years of war. Last year, the company increased its capex by 15% to $130 million.
