Ferrexpo is ready to support Ukraine’s potential in the global transition to green steel

Iron ore company Ferrexpo is committed to helping Ukraine realize its potential as an important element of the global transition to green steel, especially in Europe. Nick Bayes, Ferrexpo’s Director of Investor Relations and Corporate Communications, told Forbes Ukraine following the Ukraine Recovery Conference in Berlin.

He expressed his belief that Ferrexpo is one of the few companies that fully support the initiative of the country’s “green” metallurgical recovery.

«We are already producing high-quality iron ore pellets, which are important for the steel industry’s transition to more environmentally friendly practices. Ferrexpo’s participation in this multi-stakeholder recovery initiative right now is a clear example of our readiness to play our part in Ukraine’s future resilience and recovery. The sooner this starts at the national level, the better,” Bayes emphasized.

Ferrexpo’s Director of Investor Relations and Corporate Communications is convinced that the private sector has a key role to play in Ukraine’s recovery, and industrial leaders will provide the foundation for its efforts, also promoting the development of small and medium-sized businesses as part of the economic ecosystem.

As Bayes noted, Ukraine is home to several large companies that have demonstrated the ability to support the country throughout the full-scale invasion and are projecting to emerge from the crisis stronger.

Ferrexpo, a major Ukrainian iron ore producer, contributed up to 20% to the Poltava region’s gross regional product in early 2022, according to analysts, and accounted for 3% of Ukraine’s exports.

Despite the challenges posed by the war, Nick Bayes noted, the company’s staff has learned to adapt to the difficulties, ensuring that production is operating at optimal capacity. The reopening of the Ukrainian sea corridor has allowed the company to resume production and increase exports.

Ferrexpo, along with other Ukrainian companies – recognized industrial leaders – is well positioned to help Ukraine attract the foreign direct investment needed to rebuild. The group has a positive track record of long-term relationships with investors around the world. A significant number of them are sovereign wealth funds, investment funds and pension funds that have remained with the company despite the difficulties caused by the war.

“Their trust and support has enabled us to continue supplying our European customers, including Austrian and German producers of high-quality premium steel, such as Voestalpine, Salzgitter and ThyssenKrupp,” said Nick Bayes.

According to Mr. Bayes, the measures demanded by the EU from Ukraine as part of the integration process meet the needs of the country and the Ukrainian industry, and they are ready for them.

«Ensuring effective reforms aimed at good governance, transparency and fair legal procedures will be key to Ukraine’s accession to the EU. Ukraine’s success and progress in these areas was noted in Berlin, and we are confident that this movement will continue,” he said.

As GMK Center reported earlier, in 2023, Ferrexpo invested $101 million, with capital investments reaching 77% of the company’s operating profit. In total, from its IPO in 2007 to the end of 2023, Ferrexpo invested $3.4 billion in Ukraine.