News from Ukrainian Companies |
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October 2007
EMZ, Metalen intend to replace all aeration devices at their capacities until 2018
The Yenakiieve metallurgical plant (EMZ) and the Metalen metallurgical company intend to replace all aeration devices at their production facilities until 2018. According to the statement, there are over 70 aeration devices at the Yenakiieve metallurgical plant and Metalen. New aeration systems to be commissioned with the new furnaces No.1 and No.3 will significantly reduce the level of emissions. The preparations for the construction of furnace No.3 have started. The construction will take three years. The investment in the construction is estimated at USD 180 million. EMZ plans to start the construction of furnace No.1 in 2010. EMZ says the investment in the equipment with a nature protection effect will top USD 1 billion within eight years. Metalen and EMZ are members of the Metinvest Group. Metinvest manages the ore mining and metallurgical assets of the System Capital Management company.
31.10.2007 Source: Ukrainian News
Dniprospetsstal to decide on IPO in early 2008
Dniprospetsstal (DSS), a major Ukrainian manufacturer of special steels
that is controlled by the Interpipe group, will make a decision at the
start of 2008 on whether to carry out an initial public offering, CEO
Daniel Valk said. The plans for an IPO will be discussed by shareholders
at the beginning of the year. He said management maps out the company's
development strategy, which must then be approved by shareholders, one
of the largest of which is East One, formed through the restructuring
of Interpipe's business. In addition, issues of strategy are discussed
with the professional managers who head East One, after which DSS' plans
are approved by the supervisory board of the Interpipe group. Valk said
annual investment in the company's development totals USD 30 million
to USD 50 million, and investment in new projects amounts to USD 50
million- USD 100 million. The company's analysts value DSS at USD 0.7
billion- USD 1 billion. At present the main competitors of the company
are producers from Europe and North America, although the new production
facilities of the similar direction have appeared in South-East Asia.
"We've already feel their presence, but they are of no serious
threat for us - they produce rather cheap products with low unearned
increment. We have other priorities - most of all, more complicated
production of high-alloy steel. Asian producers will be rivals to us
if they decide to enter this market," he said.
31.10.2007 Source: Delo newspaper
Stockholders in Zaporizhstal to approve results of exchange of company's
stocks for 100% stakes in the statutory funds of five merged companies
in late 2007
The stockholders in Zaporizhstal at a general meeting scheduled for
December 21, 2007 plan to approve a report on the exchange of the company's
stocks for 100% stakes in the statutory funds of five merged companies.
Among the merged companies are Zaporizhstal Trade House Ltd. with a
UAH 180 million statutory fund, Steel Track Ltd. with a UAH 67.5 million
statutory fund, Trade House of Refractory Products Ltd. with a UAH 67.5
million statutory fund, Zaporizhstal-Invest-Torgprom Ltd. with a UAH
90 million, and Tsentrostal Ltd. with a UAH 45 million statutory fund.
The stockholders will also amend the company's regulations. Moreover,
the stockholders will amend regulations of structural divisions. The
stockholders will also consider the creation of daughter companies and
branches of OJSC Zaporizhstal. The stockholders will hear reports by
the board, supervisory council and audit commission on the company's
activities in 2006, and approve profit distribution for 2007 and dividends.
31.10.2007 Source: Interfax
Region Ltd. and Donetsk Industrial Union boosts stakes in Kramatorsk
Heavy Machine-Tool Building Works
Region Ltd., a wholesale rolled steel trader, has increased its stake
in OJSC Kramatorsk Heavy Machine-Tool Building Works to 24.9%. Donetsk
Industrial Union Ltd., a part of Industrial Union of Donbas, has increased
its stake in the plant to 10.01%. Kramatorsk Heavy Machine-Tool Building
Works is one of the biggest worldwide designers and manufacturers of
heavy duty and specialized machine-tools for machining the parts with
diameters of up to 6000 mm and weights up to 250 tonnes.
The company supplies its products to more than 50 countries around the
world. In 2007, the plant expects its net sales to be UAH 120 million.
31.10.2007 Source: Interfax
Azovstal Iron & Steel Works put into operation BF gas pipeline
"BF-TTP"
In September PJSC Azovstal Iron & Steel Works put into operation
BF gas pipeline "BF-TTP". This unit is of strategic importance
for Works in two key directions: with regard to energy saving and environmental
protection. BF gas pipeline "BF-TTP" is intended for BF gas
transfer to TTP boilers. BF gas is an optimal substitution of natural
gas. The mill has invested UAH 9 million for BF gas pipeline construction.
Annual saving from pipeline "BF-TTP" operation will make average
UAH 50 million with regard to present cost of natural gas (1000 cu m
- 956.23 UAH). "Work in energy saving field has a strategic importance
for us, - noted Dmitry Livshits, Director General of PJSC Azovstal Iron
& Steel Works. Well-directed projects implementation in energy saving
field is a profitability and competitiveness increase of our company.
19 projects directed to the energy saving were implemented since 2004
- 2006 within the frameworks of TOP at Works. Their implementation allows
subdivisions to decrease electric power consumption by 16 million kilowatt-hour
per year and natural gas - by 44.5 million cubic meters annually".
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29.10.2007 Source: press service of Azovstal
Azovstal will supply over 240 thousand tons of products to "Ukrzaliznytsya"
in 2007
At present scaling modernization takes place at Ukrainian railway roads.
About 1446 kilometers of racks are planned to be modernized in 2007
that is twice more than the scope of similar work in 2006. In 2008 the
scope of repair and maintenance works is expected to be increased due
to the growth of cargo-passenger transportation, aging of current tracks
and so on. This year Azovstal Iron and Steel Works will ship to "Ukrzaliznytsya"
over 240 thousand tons of products to the amount of 1 billion 47 million
UAH, that is 29.7% more as compared to similar supplies in 2006. In
2006 Azovstal Iron and Steel Works shipped 185 thousand tons of rails
and rail fasteners to Ukrainian rail roads and for 9 months this year
it shipped 224 thousand tons of products.
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29.10.2007 Source: press service of Azovstal
Metinvest Holding become member of International Iron and Steel
Institute
The board of directors of the International Iron and Steel Institute
(IISI) at a meeting on October 6 approved Metinvest Holding Ltd., the
managing company of Metinvest, as permanent member of the institute.
Metinvest Holding is first Ukrainian company to become an IISI member.
Permanent members of the organization have to be independent steel companies
with annual production volume of over 1.8 million metric tones. "Gaining
IISI membership is a very important event for our young company. At
present, we produce around 10 million tonnes of steel per year, and
we're the largest Ukrainian steel group. We have many plans on the further
development of business. Continual dialogues with our steel-making colleagues
and studying the best international experience in the mining and metallurgical
sector, which IISI specialists have, will give us the chance to take
into account tendencies on the global steel markets and make use of
the most efficient technologies of the leaders in the world's metallurgy
when drawing up and realizing the growth strategy of Metinvest,"
the press service said, citing Metinvest Holding Director General Ihor
Syroy as saying.
25.10.2007 Source: Interfax
Zaporizhstal produce declared produce of 2007
The "ZaporizhStal" plant has won the third all-Ukrainian competition
Metal-Progress in the nomination of the 2007 best produce, held within
the framework of the exhibition "Metal-Forum Ukraine 2007".
The company has won a prize for the cold-finished sheet. According to
the First Deputy CEO of the "ZaporizhStal" Oleksandr Putnoka,
rolled-metal annealing is being performed in dry hydrogen medium and
provides crystal plastic and net cover. The new technology has been
introduced within the framework of technical re-equipment of the plant.
The "ZaporizhStal" allocated over three bn UAH for launch
of energy-preserving technologies and construction of environmental
protection objects in 2001 to 2006.
24.10.2007 Source: Ukrinform
Interpipe boosts net profit 40% in H1
Dnipropetrovsk-based Interpipe pipe and wheel corporation earned a net
profit of USD 134.121 million in January to June 2007, while year-on-year
it was USD 95.947 million. Net sales grew by 29%, to USD 838.354 million.
"The profitable situation on the pipe and wheel market in H1 2007
and effective performance of the company in promoting its products on
the markets of the Near East and Northern Africa, Middle Asia and Russia,
helped overcome the tendencies of price hikes on metallurgical raw materials
and increase the company's profitability by 40% year-on-year,"
the press service quotes Interpipe Director General Oleksandr Kirichko
as saying. As reported, in January to June 2007 Interpipe increased
shipments of pipe products by 13.3% year-on-year, to 638,000 tonnes,
and the volume of shipments of railway wheels grew by 4.5% in six months,
to 115,700 tonnes.
22.10.2007 Source: press release of Interpipe
Bogdan to begin Hyundai assembly in June-July 2008
Bogdan plans in June or July of next year to begin CKD assembly of Hyundai
cars. , company President Oleh Svynarchuk said at a press conference
last week. "We've signed a license agreement with Hyundai Motors
to produce three models of the Hyundai," company President Oleh
Svynarchuk said. Bogdan previously produced Hyundai cars using component
assembly. Svynarchuk said the first model to be produced under full
cycle assembly will be the Tucson SUV. It will later add two B and C
class vehicles. Bogdan increased production of Hyundai cars by nearly
250% in the first nine months of the year to 11,451 vehicles. Svynarchuk
said Bogdan plans to resume a project to set up full-scale production
of trucks. It will begin construction of a truck plant this year.
22.10.2007 Source: Interrfax
Alchevskkoks begins importing coking coal from USA
Alchevskkoks coke chemical plant has started importing coking coal from
the USA. Anatolii Starovoit, the director general of the Ukrkoks association,
announced this at the Metal Forum Ukraine conference in Kiev. In his
words, importation of coal by Alchevskkoks is conditioned by overall
shortage of coking coals in the Ukrainian market and reduction of their
supplies from Russia. As to Starovoit, in 2008 Alchevskkoks intends
to import about 1.5 million tons of coking coal. Coal for Alchevskkoks
is supplied by large-capacity vessels to Romanian Constantsa port and
then reloaded to low-tonnage ships with carrying capacity of 20-30 tons
to be delivered to Reni and Mariupol ports. Starovoit stressed that
this route of coal supplies will be profitable in case coal prices remain
high in the Ukrainian market (USD 380-300 per ton).
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18.10.2007 Source: UFC Capital
ArcelorMittal eyes buys in Ukraine
ArcelorMittal stands by its USD 800 million bid for an iron ore
plant in Ukraine and plans to invest USD 2 billion at its Kryvorizhstal
steel complex by 2012. Arcelor Mittal Kryviy Rih is Ukraine's largest
metal producer and partner of the Metal-Forum of Ukraine.
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18.10.2007 Source: Reuters
SCM increases share in Kryvy Rih Iron Ore Mill to almost 50%
CJSC System Capital Management (SCM), Ukraine's largest asset management
company, through its daughter company - Cyprus-based SCM Limited - has
increased its share in CJSC Kryvy Rih Iron-Ore Mill in Dnipropetrovsk
region to almost 50%. SCM Limited owns 50% of the statutory fund in
Cyprus-based Starmill Limited, which in turn, owns a 99.88% stake in
OJSC Kryvy Rih Iron-Ore Mill. The press service said that SCM's interest
in participating in Kryvy Rih Iron-Ore Mill is explained by the groups
continued interest in mining and ore processing companies.
15.10.2007 Source: SCM press release
Ilyich Iron & Steel Works of Mariupol to invest about 1 billion
into development in 2007
Mariupol Illich Metallurgical Plant is to allocate UAH 1 billion for
capital construction, reconstruction, repairs and modernization, as
well as purchasing new equipment and machinery in 2007, the enterprise's
board chairman Volodymyr Boiko said during a press conference in Kiev.
During the last five years the enterprise invested UAH 5 billion into
company development. "All the money we earn is allocated for production
development," he said. At the moment, the construction of a pulverized
coal injection plant is being constructed, which will allow to cut natural
gas and coke consumption. Boiko also reported that the plant is mulling
the construction of the Pryazovya mining and dressing plant, but the
receiving of the according permits and project coordination is proceeding
very slowly. This project is estimated to be worth UAH 41 billion. Ilyich
Iron and Steel Works of Mariupol is one of Ukraine's top three steel
producers and traditional partner of the Metal-Forum of Ukraine.
12.10.2007 Source: Interfax
ArcelorMittal Kryvyi Rih launches coke import from France
The Arcelor Mittal Kryvyi Rih has launched coke import from France.
This was disclosed by Director General of the Ukrainian Coke Production
Association UkrKoks Anatoliy Starovoyt. According to him, the company
purchased 10,200 tons of coke in France as Ukraine faces coke deficiency.
Ukrainian companies imported the total of 162,000 tons of coke from
Russia, Poland and France in September. The ArcelorMittal Kryvyi Rih
is Ukraine's leading steel rolled metal producer and partner of Metal-Forum
of Ukraine. As many as 93.02% shares of the company belong to the Mittal
Steel Germany GmbH.
11.10.2007 Source: Ukrinform
Centravis Ltd. To invest USD 115 million in 2007-2008 to develop
production facilities
Centravis Ltd. international holding, which was created on the basis
of CJSC Nikopol Stainless Pipe Plant and the service and trading companies
of UVIS Ltd. manufacturing and commercial group, in 2007-2008 will invest
USD 115 million in production equipment and new technologies, according
to a holding press release. The holding said that investments will more
than double production capacity, increase quality and expand the range
of products.
10.10.2007 Source: Interfax
Interpipe mulls attracting USD 1 billion via IPO in London
Interpipe pipe and wheel corporation (Ukraine) plans to attract USD1
billion via an IPO in London scheduled for spring 2007, corporation
owner Viktor Pinchuk reported in an interview with Bloomberg. According
to him, Interpipe's capitalization is about USD 6 billion at the moment.
This way, if the investors agree to such an evaluation, it will be necessary
to sell no more than 17% of company's shares. Earlier, it was reported
that not more than 25% of its shares would be offered at the IPO. Pinchuk
reported that the IPO would be organized by Merrill Lynch, ABN Amro
and Deutsche Bank. Speaking about the reasons for the IPO, Pinchuk said
that "we need investments and we want to enter the Western market.
10.10.2007 Source: Interfax
Metinvest-Ukraine's creation on basis of Leman-Ukraine to be completed
in October
The legal registration of the Metinvest-Ukraine company, which is being
created in the light of restructuring of Leman-Ukraine, the largest
steel trader in the country, will be completed in October 2007. Metinvest-Ukraine
Director General Oleh Olshansky said that all of the required organization
procedures are completed and the relevant documents signed. After the
completion of the creation of Metinvest-Ukraine, Leman-Ukraine will
be liquidated. He said that Metinvest-Ukraine plans to expand its presence
on the steel markets in Ukraine and CIS, in particular, to increase
supplies to Kazakhstan, Belarus and Moldova.
06.10.2007 Source: Interfax
Metinvest Holding to invest USD 11.4 million in doubling retail
chain in Ukraine
Metinvest Holding Ltd. will invest USD 11.4 million in the expansion
of existing steel centers and opening seven new sale centers in Ukraine,
which would double the size of the company's retail chain, according
to a Metinvest Holding press release. In particular, as a part of the
first investment project, USD 9.4 million will be invested in the opening
of service steel centers under the Metinvest brand in Kryvy Rih in Dnipropetrovsk
region, Lviv, Zaporizhia, Luhansk, Kramatorsk, Mariupol (both in Donetsk
region) and Mykolaiv, in addition to the existing Leman-Ukraine retail
centers in Kyiv, Donetsk, Dnipropetrovsk, Kremenchuk in Poltava region,
Kharkiv, Odesa, Kryvy Rih, Simferopol in Crimea and Sevastopol. The
second project, worth USD 2 million, foresees the building of a new
steel products processing workshop in the service center in Kiev by
late September 2008.
06.10.2007 Source: Metinvest Holding press release
Midland Group to expand in Ukraine
Midland Group, a major operator in the international metals market,
plans to open over a thousand outlets of its MD Stores (Store Close
to Home) retail chain in Ukraine by 2013. The development of the chain
began in June 2007. The chain already consists of eight stores in the
Donetsk region and five stores in the Kharkiv region. Employee recruitment
is currently underway in the cities of Poltava, Sumy, Luhansk and the
Luhansk region The Midland Group is already experienced in the Ukrainian
retail sector through its establishment of the Amstor chain. The chain
consists of 16 stores with a total floor-space of 200,000 square meters.
The company plans to increase the total floor-space of the Amstor chain
to 500,000 square meters by the end of 2007.
06.10.2007 Source: Interfax
SMS transfers 60.97% stake in Khartsyzsk Pipe Plant to Ukrainian
Steel Holdings Ltd.
System Capital Management (SCM), the largest asset management company
in Ukraine, has transferred a 60.97% stake in OJSC Khartsyzsk Pipe Plant
in Donetsk region, the oil and gas large-diameter pipe producer, to
Cyprus-based USH Ukrainian Steel Holdings Ltd. USH Ukrainian Steel Holdings
Ltd. is fully owned by SCM. The company continues corporate restructuring
through transferring assets to its daughter company, USH Ukrainian Steel
Holdings Ltd.
06.10.2007 Source: Interfax
ZALK being restructured under Rusal standards
OJSC Zaporizhia Aluminum Mill (ZAlK) after merging with Russia's RUSAL
has started making changes in its structure according to RUSAL standards.
The company said that the introduced standards were successfully used
at other plants of the company. Three key departments would be functioning
at ZAlK: aluminous, electrolysis and casting directions. The environment
protection and quality, personnel, resources protection, financial and
commercial departments will be created. The new organization structures
of the mill's management and the Metallurg service center branch has
been formed.
05.10.2007 Source: press release of OJSC ZAIK
ZALK stockholders meeting fails due to lack of quorum
A special meeting of stockholders of OJSC Zaporizhia Alumina Plant (ZalK),
scheduled for October 1, 2007, did not take place due to the lack of
a quorum. ZalK is controlled by RusAl, created in March 2007 via merging
of RusAl, SUAL and alumina assets of Glencore (Switzerland).
05.10.2007 Source: Intefax
Ukrindustria wins tender to build coking plant for India's IISCO
steel mill
The Kiev-based Ukrindustria consortium has won a tender to build a coking
plant for India's IISCO steel mill, which could become one of the largest
contracts implemented by a Ukrainian company abroad in the metallurgical
sector. Ukrindustria board Chairman Dmytro Derkach said that the capacity
of the coking plant is 880,000 tonnes per year. The chief designer is
Kharkiv State Institute for Designing Coking Plants Hyprokoks. Derkach
said that at present Ukrindustria is working on a contract agreement,
which foresees total confidentiality. He said that this contract differs
from previous contracts of the consortium. Three candidates took part
in the qualification tender: Ukrindustria, India's Simplex consortium
and Czech Hutni Project. Consortium of Chinese design organizations
and engineering companies was not allowed to participate in the final
stage of the tender. The company received official notification of its
victory in the tender on September 14.
04.10.2007 Source: Interfax
Etalon corporation mulls production of top-class tour buses in Lviv
Etalon corporation, one of the major bus market participants in Ukraine,
plans to create a new bus plant in Lviv. "There will be a plant
in Lviv, and I think we will be producing top-class busses on based
on European models - the point is, it should be a brand, recognizable
in Europe," Etalon corporation president Volodymyr Butko reported
during a press conference in Kyiv on Tuesday. Etalon corporation, which
includes Boryspil and Chernihiv car plants, produce small class busses
on a GAZel bus chassis, small and medium class buses on a TATA bus chassis,
and seven and ten-meter busses on a FAW bus chassis.
04.10.2007 Source: Interfax
AvtoKraz in 2007-2008 to create assembly facilities abroad
The AvtoKrAZ holding company, the only heavy hauler producer in Ukraine,
in 2007 and 2008 plans to create a number of assembly facilities in
India, Cuba and Iran, AvtoKrAZ Sales Manager Ihor Fomenko said at a
press conference during the TIR'2007 international truck and commercial
car show. He also said that preliminary agreements on the creation of
assembly facilities in Venezuela, Ecuador and Nicaragua had been reached.
Moreover, AvtoKrAZ plans to create joint ventures in Poland, Algeria
and Ghana.
04.10.2007 Source: Interfax
SCM receives USD 90 million tranche of USD 300 million loan
Donetsk-based CJSC System Capital Management on October 2, 2007, received
the next USD 90 million tranche of a USD 300 million credit line from
Cyprus-based System Capital Management Limited under a loan agreement
signed in September 2005. Previous tranches, worth USD 20 million, USD
20 million and USD150 million, were received by SCM on March 14, March
19 and July 25, 2007, respectively. SCM's press service earlier reported
that for the implementation of its investment plans, worth USD 5 billion,
an intergroup agreement was signed back in 2005, on opening a credit
line between SCM and SCM Limited, which would provide prompt financing
of investment programs for the group's business development in Ukraine.
04.10.2007 Source: Interfax
Merger, takeover type
Metinvest and the Smart Group united to forge a monopoly on the iron
ore market
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03.10.2007 Source: Kyiv Weekly
Khartsyzsk Pipe Mill ups output 5% in 9 months
The Metinvest Holding's Khartsyzsk Pipe Mill from Ukraine increased
production of large-diameter pipes by 4.9% year-on-year in January-September
2007 to 419,800 tonnes, including 33,400 tonnes in August. Large-diameter
pipe production at Khartsyzsk rose 9.2% in 2006 to 595,700 tonnes. The
mill has orders for more than 700,000 tonnes in 2007. Khartsyzsk is
the FSU's biggest producer of straight-seam pipeline tubes 478-1420
millimeters in diameter with anti-corrosive. It is a member of the Metinvest
group, which runs the mining and metals sector assets of the Donetsk-based
System Capital Management (SCM).
03.10.2007 Source: Interfax
ArcelorMittal Kryviy Rih boosts roll output 4.6% in 9 months
Mittal Steel Kryviy Rih (formerly Kryvorizhstal) boosted finished roll
production 4.6% year-on-year in January-September to 5.332 million tonnes.
Steel production grew 10% to 6.112 million tonnes, pig iron rose 8.5%
to 5.438 million tonnes and sinter rose 6.4% to 9.001 million tonnes.
In September, the mill produced 570,000 tonnes of finished roll, 672,000
tonnes of steel, 587,000 tonnes of pig iron and 967,000 tonnes of sinter.
ArcelorMittal Kryviy Rih is Ukraine's biggest steel mill and traditional
partner of the Metal-Forum of Ukraine. Mittal Steel Kryviy Rih controls
up to 20% of Ukraine's steel market.
02.10.2007 Source: Interfax
Capital Group International, Inc. acquires over 3% shares in Ferrexpo
Capital Group International, Inc. (CGII), one of the largest investment
management companies in the world, has gained control over 18.888 billion
shares, or a 3.076% stake in the London-based Ferrexpo Plc, which owns
OJSC Poltava Ore Mining and Dressing mill, and which is listed on the
London Stock Exchange.
02.10.2007 Source: Interfax
Kryukovsky Railway Car Building Works receives permission for mass
production of Ukraine-2 cars
Opened JSC Kriukivsky railway car plant (Kremenchuk, Poltava region)
has received permission from the State Railway Administration of Ukraine
to launch the mass production of Ukraine-2 cars. Ukrzaliznytsia Deputy
Director General Anatoliy Slobodian signed the relevant documents on
September 28. ""Kriukivsky railway car plant President Volodymyr
Prikhodko said that we are achieving a new level in the passenger car
building," the press service said.
02.10.2007 Source: press service of OJSC Kryukovsky Railway Car Building
Works
Ukraine decides to sell Debaltseve Metallurgical Engineering Plant
in 2007
The Ukrainian government has increased the list of stakes put on sale
in 2007, including in it a 99.54% stake of OJSC Debaltseve Metallurgical
Engineering Plant. According to a government resolution of September
26, the list has been enlarged by 30 stakes, including a 100% stake
(apart from the beneficial sale of stocks) of one of the largest chemical
enterprises - OJSC Sumykhimprom, a 25%+1 share stake in OJSC Dnipropetrovsk
Aggregate Plant, and a 100% stake in the producer of hydro acoustic
and navigation systems OJSC Krasny Luch Plant.
02.10.2007 Source: Interfax
