One employee in the steel industry creates eight jobs in related industries – Metinvest

One employee in the steel industry creates about eight jobs in related industries, from transport and energy to services. This was announced by Sergiy Skorbun, Head of External Projects Coordination at the Office of the CEO of Metinvest Group, during the Western Ukrainian Business Forum in Ivano-Frankivsk.

According to him, this ratio is 1:4 for the mining industry. That is why large export companies that bring foreign currency into the country need systematic support from the state.

According to Metinvest’s estimates, before the war, the mining and metallurgical complex, together with related sectors, accounted for about 10% of Ukraine’s GDP, but in 2023-2024, this figure will almost halve to 5.5-5.7%. The war has caused serious losses: plants in Mariupol, Avdiivka Coke, and, more recently, the Pokrovsk Coal Group have been shut down. Despite this, the industry remains competitive by adapting production and sales to the new conditions.

Skorbun emphasized that big business is the foundation for the development of small and medium-sized businesses. It creates production chains, generates demand for services, and contributes to the development of human capital.

“That is why big business should be the focus of state industrial policy,” he said.

The speaker named clear tariff and tax policies, as well as access to European markets, as key conditions for the industry’s survival.

“It is important for us to maintain our position in the European market in order to sell products at competitive prices and modernize enterprises in line with market requirements,” added the Metinvest representative.

He separately emphasized the importance of “green” transformation – the transition to electric steelmaking technologies with minimal CO2 emissions. This requires security guarantees and access to capital, including through the support of international financial institutions. Ukraine’s raw material base could become key to Europe’s green course, particularly in the production of DRI pellets.

“This creates strong synergies between Ukraine and Europe that can be developed in the future,” he concluded.

As previously noted by Metinvest CEO Yuriy Ryzhenkov, Ukraine needs investment security guarantees to restore confidence and attract capital, as well as open markets, primarily European ones. Without these factors, business will not be able to recover after the war.