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Social partnership with cities

Metinvest Group’s enterprises play an important role in the development of the local communities and in paying off to the budgets of all levels. The cumulative tax payments to the general fund of the state budget in 2010 amounted to over UAH 11 billion and the cumulative volume of social assistance in 2009-2010 amounted to over UAH 72 million. 

This role determines the character and structure of the Company’s cooperation with municipal and district administrations. As part of the annual partnership, Metinvest’s enterprises sign bilateral agreements for cooperation with the heads of municipal and district administrations.

In 2011, in the frames of such cooperation a number of significant programs aimed at towns’ support including the programs on improvement and reconstruction of social infrastructure, support and development of health service, education, etc. were implemented by the Company in the areas of its presence.

Mariupol

 

Development and improvement of municipal infrastructure and territories

Mariupol steel making enterprises render support to municipal infrastructure on the basis of bilateral agreements for social and economic cooperation concluded with the Mariupol Municipal Council.

As part of such bilateral agreement for 2011, Azovstal Iron and Steel Works appropriated UAH 800 thousand for the repair of the city central highway. The start of the repair works is planned for October 2011; totally, it is planned to repair 1537 m2 (161 meters of track) of the traffic area. In the frame of the bilateral agreement with the city, Ilyich Iron and Steel Works has invested UAH 3.1 million in improvement and repair of the city roads.

Education support

Since 2003, Azovstal Iron and Steel Works has been implementing the strategically important educational project “School – University – Enterprise” aimed at training of Metinvest’s potential employees starting from school period.

The major goal of the project is to raise highly qualified specialists adapted to work at the modern production site and to form the future talent pool for the enterprise.  

At the first stage, Metinvest secures the intensive educational process for school students, which stimulates their entering higher educational institutions and faculties of priority to the Company. At the following stage, those students who managed to go through the second phase of the competitive selection and entered the specialized groups continue studying additional subjects according to the program coordinated with the Company. Those students who succeeded in the program are guaranteed to be offered jobs at Metinvest’s enterprises. During the following year, the young specialists must show themselves in order to move up the carrier ladder.

As a result of the program implementation, the Company obtains opportunities for saving time and resources to adapt the young specialists and to involve them effectively into the production process, while the graduates receive all chances necessary for their professional and carrier development.  

In 2011, at the beginning of the new school year, as part of the educational project “School – University  – Enterprise”, Azovstal Iron and Steel Works rendered financial support to schools No. 40 and No. 14 in Mariupol in the amount of UAH 475 thousand.

Program participants  (as of September 12, 2011)Number of people
Graduates occupying the positions of managers and specialists 36
Graduates occupying working positions 14
Students of Pryazovskyi State Technical University (4-5 years of study) 72
School students  (9-11 grades) 100

Mariupol Metinvest’s enterprises - Azovstal and Ilyich Iron and Steel Works – also render significant support to the city educational institutions for development of their material and technical assets.

For example, during the first six months of 2011, Ilyich Iron and Steel Works invested UAH 1695 thousand in the municipal educational institutions. This summer alone, in order to prepare for the new school year, the enterprise rendered support to 20 municipal schools in the amount of UAH 500 thousand. The educational institutions managed to perform large scale works on improvement and repair of classrooms, buildings and school territories. To perform the works planned, the enterprise has not only provided the schools with labour force, but has also helped with materials: paints, glass, tubes, etc.

Health care support

PJSC “Azovstal Iron and Steel Works” and PJSC “Ilyich Iron and Steel Works” traditionally support the municipal health institutions.

For example, Azovstal Iron and Steel Works has a long term cooperation with Multidisciplinary Municipal Hospital No. 4. In September 2011, the enterprise appropriated the support in the amount of UAH 500 thousand to renew the photoroentgenography department and the daytime patient facility, as well as to repair the heating system of the surgery block. In particular, at the hospital photoroentgenography department, the workers replaced the window blocks and 60 m2 of the roof, repaired the waiting room and installed the heating system (as this premise was not heated before). At the daytime patient facility, they performed the full repair of two therapeutic rooms, a room for the veterans of the World War II, a manipulation room, a corridor and a lounge. In the premises, the workers completely replaced the floor coating, installed seven modern metal-plastic window blocks, performed the capital repair of the sanitary facility and installed new sanitary equipment. Totally, since the beginning of the year, Azovstal’s investment in Municipal Hospital No. 4 has amounted to over UAH 1.4 million. On these means, the hospital repaired its clinical laboratory, surgery block and photoroentgenography department.

Khartsyzsk

 

During the first six months of 2011, PJSC “Khartsyzsk Pipe Plant” invested UAH 959 thousand in the development of the town infrastructure, health service, education and sports to help the local community.

Development and improvement of municipal infrastructure and territories

The plant traditionally supports the town program aimed at repairing the road surface. During the works performed in 2011, the workers repaired the traffic areas at Paton, Filatov, Babushkin, Kondratiev Streets. These streets are not only the major access ways to the enterprise, but also the area where a lot of the enterprise workers live. The budget of the project amounted to UAH 300 thousand.

As part of the efforts to support environment projects aimed at improving the town landscape, the plant continues implementing its long-term reconstruction program “Park of generations”. The investment in this project amounted to UAH 350 thousand. During the project works, the enterprise removed waste from the recreation area, sawed down dry wood, planted new alleys and laid pedestrian paths.

Education support

The volume of the plant’s investment in the health programs during the first six months of the year amounted to UAH 200 thousand: on these means the capital repair of school building of School No. 6 was performed.

Health care support

During the first six months of 2011, the enterprise invested UAH 100 thousand in the health projects. The major part of the resources was addressed to repair the Municipal Sanitary and Epidemiological Station and to purchase of medical supplies for the Central Municipal Hospital.

Yenakiieve

 

Annually PJSC “Yenakiieve Iron and Steel Works” renders addressed material support to the Veteran Council of Yenakiieve Iron and Steel Works to purchase medical drugs and food products and to be treated in the in-patient hospital.

On a constant basis, the plant secures the maintenance of seven medical posts located in its territory and the rooms for the veterans and invalids of World War II in Municipal Hospital No. 2. As of today, the rate of such support amounted to over UAH 1 million 300 thousand.

By the end of 2011, the enterprise plans to purchase equipment for the Yenakiieve cancer detection center for the amount of UAH 600 thousand, to render support in improving sleeping rooms in the asylum “Riabynka” for almost UAH 50 thousand and to render support to Hospital No. 2 in the amount of UAH 114 thousand to repair the roentgenograph.

Makiivka

 

Makiivka Branch of PJSC “Yenakiieve Iron and Steel Works” together with the Makiivka Municipal Council financed the repair of roads, networks and communications. Currently, the sum of investment has amounted to UAH 150 thousand.

Besides, the enterprise renders addressed material support to the municipal organization of veterans; as of today, the amount of such a support equals to UAH 50 thousand. By the end of the year, the enterprise plans to provide help to Municipal Hospital No.2 in the amount of about UAH 100 thousand.

Avdiivka

 

Since the beginning of 2011, PJSC “Avdiivka Coke and Chemicals Plant” appropriated over UAH 7 million as part of the social investment programs. The annual social investment budget for 2011 amounts to over UAH 12 million.   

The largest social investment projects of Metinvest Group in Avdiivka are aimed at the support and development of the town infrastructure. In particular, the resources were addressed to maintain and service the municipal heating networks, to purchase and install technological equipment for the public utility service. Within the first nine months of 2011, the volume of investment for this set of measures amounted to UAH 6.5 million. Besides, the enterprise renders assistance to the municipal council in financing medical institutions, schools and kindergartens.

In 2011, in the framework of sports and sports facilities development, the plant started the construction of a new football pitch with the artificial surface and performed the reconstruction of the stadium. For these purposes, the enterprise appropriated over UAH 180 thousand.

Dzerzhynsk

 

In 2010, Metinvest’s enterprise, Inkor & Co. (Novhorodske village of Dzerzhynsk) financed the repair of the bridge over the Zalizna Balka River, due to which freight traffic between Dzerzhynsk and Donetsk was restored. The volume of investment amounted to about UAH 3.3 million.

Kryvyi Rih

 

Development and improvement of municipal infrastructure and territories

Since 2008, with support of Metinvest’s enterprises, PJSC “Northern Iron Ore Enrichment Works”, PJSC “Central Iron Ore Enrichment Works” and PJSC “Ingulets Iron Ore Enrichment Works” in Kryvyi Rih have been implementing their long-term comprehensive program aimed at creating comfortable living areas for the local community and the enterprises’ employees developed with regard to their opinions.

The comprehensive reconstruction is being performed in several stages. The first stage included large scale works on the reconstruction of Zhovtnevyi micro-district; during the second stage (in 2009), the program continued in Damanskyi micro-district; the third stage covers the territory of the 44th Quarter district. In 2010, Metinvest enterprises started the reconstruction of Mussorgsky Street, where they laid out a cosy park, opened the Fame Alley, built sports grounds and constructed a rollerdrome - the first comfortable facility in the town for roller skating and skateboarding.

The first half of 2011 was also marked by several large scale projects of the major reconstruction program, which helped to improve Kryvyi Rih. The second stage of Mussorgsky Street  reconstruction proved to be the largest social improvement project implemented during the first six months of 2011. During the reconstruction financed by Metinvest in the amount of about UAH 8 million the workers painted the facades of 16 residential buildings, installed 30 benches, over 30 city lights, performed decorative lighting of trees and facades of buildings and constructed an entrance arch to the Park named after the 50th anniversary of the Ukrainian SSR. Opposite the Palace of Culture, they installed a led display, and at the rings of the 44th Quarter – a decorative post with a led traveling line. All this make Mussorgsky Street modern and comfortable for a large number of employees of PJSC “Central Iron Ore Enrichment Works” who live there.

In 2011, Kryvyi Rih opened the monument in honour of the perished soldiers of the assault battalion and the monument to the participants of the containment of the accident at Chornobyl Nuclear Power Station, to mark its 25th anniversary. The budget of both projects amounted to over UAH 300 thousand.

Krasnodon

 

PJSC “Krasnodoncoal” traditionally renders financial support to the town organizations (social institutions, non-commercial organizations, etc.) and invests significant resources in the maintenance of the municipal social facilities. The cumulative volume of the enterprise’s social investment in 2010 amounted to over UAH 15.5 million; the planned volume for 2011 is over UAH 16 million.

For example, in 2011, the enterprise has already implemented several large scale projects, among which the opening of the sports complex in Molodohvardiisk for UAH 3.6 million, the opening of the medical and diagnostic centre “ULTRAMED” for which the enterprise appropriated over UAH 800 thousand, etc.

Aiming at improving the efficiency of social partnerships with towns, the Company switches over to a long term strategic planning. For this purpose, in 2010 the first joint partner project started in Krasnodon; the partners of the project are the Krasnodon Municipal Council, the United States Agency for International Development (USAID) and PJSC “Krasnodoncoal”. The goal of the project is to increase Krasnodon’s investment attractiveness, its long term sustainable development via the development and implementation of the Strategic plan of social and economic development of the town to 2015.

Please see details on the project in Programs with international partners.