Zaporizhstal invested UAH 938 million in production facilities in 2024

Metinvest Group’s Zaporizhstal Iron and Steel Works has allocated UAH 938 million to maintain its production facilities as part of its 2024 investment program. This is stated in the press release of the enterprise.

In particular, the funds were invested in major overhauls of the main production units, implementation of investment projects in labor protection, information technology and social sphere.

The key equipment upgrade projects implemented last year included the repair of blast furnaces №2, №3, and №4 with a total investment of over UAH 230 million. Similar investments were made to carry out a set of major overhauls of the main rolling units.

The plant overhauled the equipment of two sintering machines, including the revision of environmental protection equipment. It also implemented a number of investment projects to digitalize production processes and upgrade its IT infrastructure.

Every year, the company invests in improving working conditions for its employees: two sanitary facilities have been overhauled and two new modular sanitary facilities have been installed.

“The main focus of Zaporizhstal’s capital investment program is on maintaining efficient and trouble-free operation of production equipment and its treatment facilities. After all, a functioning enterprise provides employment, exports and foreign exchange earnings, revenues to the state budget, support for the region of operation, etc.,” says Taras Shevchenko, CEO of Zaporizhstal.

Despite the challenging economic situation, the company has been gradually increasing its capital investments in production during the war. In 2022, investments amounted to UAH 500 million, in 2023 – UAH 750 million, and in 2024 – UAH 938 million.

The capital investment budget for 2025 is planned at UAH 1.1 billion. According to the CEO, the company is already implementing the first investment projects planned for the current year.

In particular, in 2025, the plant will overhaul BF No. 3, two sinter machines, BTS-1680 and Slabbing-1150 mills, heating wells, BTA-4 line, modernize rolling production, as well as upgrade the amenities of the steelmaking shop, water supply shop, and implement a number of other projects.

As GMK Center reported earlier, in 2024, Zaporizhstal increased its production of commercial rolled steel by 18.3% compared to 2023, to 2.43 million tons. The company produced 3.11 million tons of pig iron in the year, up 14.3% y/y, and 2.89 million tons of steel (+17.2% y/y).

The increase in production volumes compared to 2023 is due to higher blast furnace productivity, increased demand for commercial pig iron and the partial restoration of the sea freight export route.