Metinvest is among the top 10 successful investors in Ukraine according to dsnews.ua

Despite the colossal losses from the occupation, destruction and obstacles to export, the group's annual investments reach $300 million

Metinvest Group is among the top ten successful investors in Ukraine according to dsnews.ua. Despite the enormous losses from the occupation, destruction and export barriers, the company continues to invest in production facilities, with an annual volume estimated at more than $300 million. This is stated in the group’s press release.

Last year’s investment projects included the launch of new coking coal longwalls at Pokrovsk Coal Group, major overhauls at Kametstal and Zaporizhstal (from blast furnaces to rolling mill equipment), and the increase in tailings storage levels at Pivdennyi and Ingulets Minings. Metinvest is also investing in sustainability projects at Northern and Southern Minings and overhauling staff quarters.

“Although large strategic projects have been put on hold, the Group responds quickly to changes in the business environment and adapts its investment program to maintain efficient production. First of all, it invests in existing facilities that need to be modernized,” the statement said.

The company plans to make no less investments this year than last year, including critical repairs. At the same time, funding for strategic projects, including the green and digital transformation of steel companies in Ukraine, has been postponed until after the war.

“Even during the hot phase of the war, Metinvest has been investing heavily in repairs to its surviving Ukrainian facilities and simultaneously preparing for strategic investments once peace comes. Any business that plays the long game makes regular investments. This is especially true for capital-intensive industries such as steel. That is why, despite the loss of steel mills in Mariupol and several other strategic assets in the east of the country, the company has not stopped investing in its Ukrainian operations,” the company said.

This year, Metinvest plans to invest $320 million in capital and about $350 million in operating investments in equipment and work sites. The focus is on repairing blast furnaces and sintering machines, maintaining Mining equipment and developing mine management in Pokrovsk.

“It is worth emphasizing that postponing strategic projects does not mean a lack of strategic thinking. The company is well aware that once the hostilities end, it will need to increase production volumes. Therefore, strategic investments can be “switched on” any year, it all depends on the military and political situation, or rather, the reduction of risks associated with hostilities and the enemy’s aggressive plans,” Metinvest adds.

Finally, within 5-10 years after the end of the war, the group plans a large-scale green transformation of its Ukrainian assets – Minings, Kametstal and Zaporizhstal – worth about $9 billion.

According to Metinvest’s Chief Operating Officer, Oleksandr Myronenko, the company’s priority investment areas for 2024-2025 are employees, equipment and assistance to the Armed Forces of Ukraine. In 2022-2023, the group invested UAH 23 billion in the modernization of Kametstal and Zaporizhstal, as well as the green transformation of the enterprises.