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Foreign media named the main problems of Ukrainian metallurgists

Photo: Zaporizhstal

The only small bright spot for the metal industry is rising domestic demand in Ukraine as the state produces more weapons, builds bomb shelters and rebuilds destroyed cities, journalists say.

Before the war, metallurgy provided 10% of GDP and 30% of Ukraine’s exports. But the industry is going through a difficult period due to the proximity of businesses to the front line, lack of personnel and blocking of exports, which significantly increases the cost of delivering products. This is stated in a report from Reuters, whose journalists visited the plant. Zaporizhstal groups Metinvest.

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“Last year Zaporizhstal operations were suspended for the first time since World War II. Its general director, Roman Slobodyanyuk, knows that the future of the plant and the strong metallurgical industry in Ukraine as a whole are currently under discussion. Until producers can ship steel to markets across the Black Sea, where Russia is blocking shipping, prospects for recovery in an industry second only to agriculture in Ukraine’s economy are bleak.

Journalists write that a small bright spot for the metallurgical industry is the growth of domestic demand in Ukraine, as the state produces more weapons, builds bomb shelters and begins to rebuild the cities that were destroyed during the war. But even though consumption nearly doubled to 2.6 million tons from January to September, it was not enough to support an industry that previously exported four-fifths of its output, the agency said.

There are also major logistical problems, as Black Sea ports operate with great restrictions.

“Steel producers send as much product as possible to Europe by train. But compared to shipping by sea, it costs four times more. Kiev is now starting to send shipments through the so-called humanitarian corridor after Russia pulled out of the grain deal. Officials and executives “It is expected that this route will also be used for steel. However, it is dangerous due to the fact that Russia has increased the number of attacks on the infrastructure of the port of Odessa and its surroundings in recent weeks,” the journalists wrote.

In addition, smelters face the risk of power outages and also struggle to find workers – even when operating at reduced capacity. After all, several hundred workers Zaporizhstal left the city because of the proximity of Zaporozhye to the front line.

Previously on Metinvest said that at the beginning of the war the vertically integrated structure of the holding was disrupted. But some measures ensure the survival of the company and further development.

It has also been reported that in six months Metinvest paid 6.3 billion hryvnias in taxes. And in the second quarter of this year, the group transferred more than 3.8 billion to the state budget, which is 51% more than the figure for the first quarter of the same year.

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Source: korrespondent

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