20 February 2017
Yenakiieve Iron and Steel Works (“Yenakiieve Steel”, which includes a Makiivka branch), a steelmaker, and Krasnodon Coal Company (“Krasnodon Coal”), a coking coal producer, subsidiaries of Metinvest Group (“Metinvest” or “the Group”), have halted operations. Production has been disrupted by the ongoing armed hostilities and a blockade of railway transportation between Ukraine and the uncontrolled territory in the southeast.
Since the beginning of the conflict in the region, Yenakiieve Steel has experienced erratic supplies of iron ore. Following a blockade of the Yasinovata-Skotovata railway line, shipments of raw materials and finished goods are not possible for now.
Yenakiieve Steel has completed preparations for temporary mothballing. A blow-out of blast furnace nos. 3 and 5 has been performed and the basic oxygen furnace shop has stopped operating. Production at the Makiivka branch will be halted on 25 February 2017.
In addition, Krasnodon Coal has halted coal production at all mines due to the blockade of railway transportation.
Yenakiieve Steel and Krasnodon Coal are registered in territory controlled by Ukraine and pay all taxes and duties to the state budget as stipulated in the country’s legislation.
Despite the suspended operations at Yenakiieve Steel and Krasnodon Coal, Metinvest takes its role as a corporate citizen of Ukraine extremely seriously and responsibility for its local communities equally. The Group’s plants are the main employers and economic anchors in their communities. Metinvest does not intend to reduce headcount at Yenakiieve Steel (including the Makiivka branch) or Krasnodon Coal. In addition, employees of the facilities will be transferred to two-thirds remuneration.
- For editors:
Head of Investor Relations
Tel: +41 22 591 03 74 (Switzerland)
Tel: +380 62 388 16 24 (Ukraine)
Manager of Investor Relations
Tel: +380 62 389 71 36 (Ukraine)
METINVEST GROUP is a vertically integrated group of steel and mining companies that manages every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. It comprises steel and mining production facilities located in Ukraine, Europe and the US, as well as a sales network covering all key global markets. The Group is structured into two operating segments, Metallurgical and Mining, and its strategic vision is to become a leading vertically integrated steel producer in Europe, delivering sustainable growth and profitability resilient to business cycles and providing investors with returns above the industry benchmarks. For the nine months ended 30 September 2016, the Group reported revenues of US$4.6 billion and an EBITDA margin of 22%.
METINVEST HOLDING LLC is the management company of Metinvest Group.