Investments in the projects will total $285 million
In 2019–2020, the Metinvest Group is going to invest $145 million in repair of the blast furnace No. 3 at Azovstal and $140 million in modernization projects at Ilyich Iron and Steel Works of Mariupol. This was announced by Yuriy Ryzhenkov, Metinvest CEO, in his interview to GMK Center.
“One of the our most important investment projects for 2019–2020 is the overhaul of the blast furnace No. 3 at Azovstal that will cost more than $145 million and at the same time the launch of a pulverized coal injection (PCI) unit to reduce natural gas consumption,” he said.
Another important investment project, according to Mr Ryzhenkov, will be the reconstruction of the gas-cleaning system at the sinter plant within Ilyich Iron and Steel Works of Mariupol worth $140 million — it will allow reducing dust emissions by 90%.
Metinvest’s technological strategy 2030 approved in 2017 provides for the development of the Group’s own assets with the purpose to improve the quality of their products and decrease their cost.
In 2018, Metinvest increased capital investment by 66% compared to the previous year, up to $898 million. Its investments in maintenance projects increased by 36% and amounted to $610 million (68% of the total investments compared to 83% in 2017). The Group’s investments in development projects increased thrice and amounted to $288 million (32% of the total investments compared to 17% in 2017).
The metals segment accounted for 57% of the Group’s capital investments (51% in 2017), and the mining segment — 41% (48% in 2017). Capital expenditures for corporate overhead costs doubled up to $19 million in 2018.
Capital investments in 2018 were mostly financed with the Group’s own funds.