Ukrainian defense plants, machine-building enterprises and the restoration of destroyed infrastructure depend on casting. Although since the beginning of the war the Ukrainian foundry industry has lost about 50% of its capacity, and the existing enterprises are operating at 30-50% capacity utilization, the industry expects an increase in production by the end of this year. However, it is too early to talk about possible growth dynamics, as there are long 4 months ahead, when there may be serious problems with energy supply.
The main problems of the foundry industry include the following:
Now there are two main groups of casting consumers. The first in terms of order volume and key in terms of importance is the defense industry. Currently, the increase in production for defense purposes has stalled for certain reasons, but we hope that the existing problems will be eliminated in the near future. Our positive expectations are based on the fact that a little earlier, there was a tangible increase in demand for defense products.
Another direction is the numerous sub-branches of machine building (agricultural, wagon and power engineering), infrastructure construction, power engineering, etc. The dynamics of these sub-branches are very different. Their dynamics are very different at present, but the demand for foundry products will be particularly high as part of the post-war reconstruction of destroyed infrastructure.
We already now need to think that this process was ensured by the products of Ukrainian enterprises and not by importing on credit all products from our partners. A corresponding state strategy should be developed, which should be the responsibility of the specialized Ministry of Strategic Industries of Ukraine.
We expect an increase in production in 2024, but today it is objectively difficult to predict anything accurately. In 2023, the output of foundry products amounted to approximately 300,000 t. In the current year, we planned to issue 380-400 thousand t of casting. But now no one knows what the fall-winter will be like and the situation with energy supply. Of course, if there are long-term outages, then you can forget about the rhythmic work of enterprises.
The foundry industry is very important for the country’s defense capability and post-war reconstruction. Now the industry is developing not thanks to it, but in spite of it – because there are proactive owners and managers of foundry enterprises who try to break through the walls of bureaucracy and offer their products.
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