Metals and mining

Igor Syry, Chief Executive Officer, Metinvest Holding

"The Metinvest Group is building a high-profile Ukrainian business that can compete equally, build partnerships with the leading players in the industry and represent Ukraine as a strong European country in the international markets". 

Metinvest is an international vertically integrated mining and metals company. The Group Metinvest is managed by METINVEST HOLDING established by SCM in 2006.

The favourable location of Metinvest businesses ensures competitive advantages: proximity to raw materials deposits, low cost of resources and convenience to reach the target markets.

Vertical integration allows Metinvest to manage the whole production chain starting from raw materials extraction to the retail sale of rolled products. This ensures effective decision-making that can benefit the whole Group rather than just its individual companies.

Metinvest has own sales and service infrastructure with a global sales network supplying products to over 75 countries.

Strategic goals of the Metinvest Group:

• building a world-class mining and metals business;
• taking the lead in Europe and the globe;
• maximizing value of SCM's mining and metals business.

To achieve these goals, Metinvest invests in development of existing companies, realizes operational efficiency programmes and continues to follow its vertical integration strategy.

In 2010 the Metinvest Group's consolidated revenue was $9.358 million, EBITDA — $2.552 million and net profit — $437 million.

Metinvest has three divisions:

• Mining Division;
• Metal Division;
• Sales and logistics.

Northern GOK, pellets storage area

The companies within the Mining Division produce iron-ore concentrate, pellets and other raw materials for steelmaking. The ore mining and processing plants (GOKs) cover the needs in raw materials of the Group’s steel mills as well as supply their products to many other Ukrainian and international steel companies.

In 2011 the Mining Division produced 35.74 million tonnes of iron ore products.

The coal mines produce oking coal of grades “Zh” and “K” (fat and coking coals) which are used to make blast-furnace coke needed for pig iron production.

The Mining Division consists of:

• Northern GOK;
• Central GOK;
• Ingulets GOK;
• Krasnodonugol Coal Company;
• United Coal Company;
• Komsomolske flux and mining company.

Metinvest Trametal SpA, flat rolled products line

The Metal Division consolidates Metinvest Group’s plants that have steel-making and steel-rolling facilities, the companies producing finished steel products as well as the companies selling and supplying the Metinvest Group's products to customers.

In 2011 the Division's mills produced 9.2 million tonnes of metal products.

The Division's coke and chemicals plants fully satisfy the demand of the Metinvest Group's steel mills for blast-furnace coke.

The Steel and Rolled Products Division includes:

• Azovstal Steel Plant;
• Ilyich Iron and Steel Works;
• Yenakiyevo Steel Plant;
• Khartsyzsk Pipe Plant;
• Promet Steel AD;
• Ferriera Valsider;
• Metinvest Trametal;
• Spartan UK;
• Avdiivka Coke and Chemicals Plant;
• Inkor Chemicals;
• Metinvest-Resource;
• Prometey.

Metinvest exports a substantial portion of its steel products to over 1,000 customers located in more than 75 countries through its broad international sales network which is covering most of the key regions in the world.

• Skif Shipping;
• Danube Shipping Stevedoring Company;
• Metinvest International S.A.;
• Metinvest Eurasia;
• Metinvest-Ukraine;
• Metinvest SMC.