For metallurgists, land logistics have become more expensive, and production has been affected by energy supply problems.
In 2023, the losses of the metallurgical enterprises of businessman Rinat Akhmetov amounted to more than 70 billion hryvnias. Such data was published in a new study by Forbes Ukraine.
It is indicated that this year the entire metallurgical industry of Ukraine continues to recover from the most dramatic collapse caused by the full-scale invasion of Russia.
“The aggressor destroyed the Ilyich Iron and Steel Works and Azovstal, which provided 40% of the production of metal products, and also blocked sea exports. The production of steel and rolled products fell by 70- 72%, and the negative trend was interrupted only in March 2023: metallurgists produced a total of 5 tons of steel – almost 25% more than last month,” the publication stated.
Also, for metallurgists, ground logistics have become more expensive, and production has been affected by energy supply problems.
Thus, Rinat Akhmetov’s metallurgical company Metinvest received UAH 70.9 billion in losses throughout the year. In particular, the Zaporizhstal plant suffered a loss of 4.9 billion, which was forced to mothball in March last year due to its proximity to the conflict zone and man-made hazards. Since April 2022, the plant has operated at an average of 50% capacity: the increase in production requires the full resumption of sea exports through deep-sea ports.
In turn, ArcelorMittal Kryvyi Rih received a loss of UAH 49 billion for the year – the plant is still operating at less than half capacity, and half of the workers are idle. The company’s goal at the end of the year is to achieve positive EBITDA and retain all employees.
At the same time, Ferrexpo Konstantin Zhevago and Interpipe Viktor Pinchuk are doing better: Ferrexpo’s revenue reached 7.1 billion Hryvnia, and Interpipe – 6.6 billion Hryvnia.
Earlier, Metinvest told how they survived the war. The company said its vertically integrated structure was disrupted at the start of the Russian invasion.
Metinvest also said they refused tax benefits, despite the low freight of businesses.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.