News from Ukrainian Companies |
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November 2007
Kremenchuk Steel Works supplies Iran with second batch of truck housings
The Kremenchuk Steel Works JSC dispatched 12 wagons of finished products, notably 252 truck housings of the 18-100 model to the Public Joint Stock Co. "Wagon Pars" of Iran, representative of Kremenchuk enterprise V. Lytvynenko told. "On November 16, we delivered the first batch of the filled order to the Iranian clients (147 truck housings). We have just forwarded 252 more housings. The contract is to be fully completed in December, when we will dispatch the last 210 truck housings of the 18-100 model," V. Lytvynenko noted.
30.11.2007 Source: Ukrinform
USH Ukrainian Steel Holdings Ltd. transfers 35.2% stake in Yenakiyeve
steel plant to Metinvest B.V.
USH Ukrainian Steel Holdings Ltd., a 100% subsidiary of CJSC System
Capital Management, has transferred a 35.224% stake in OJSC Yenakiyeve
metallurgical plant to Metinvest B.V., a subsidiary of SCM (Cyprus).
According to the plant, Metinvest B.V. currently owns 55.224% of the
plant's stocks. OJSC Yenakiyeve metallurgical plant, also known as EMZ,
jointly with Ukrainian-Swiss JV Metalen Ltd. are part of the EMZ group
of companies. The companies, being separate legal entities, carry out
economic activity on one production site, have a common production cycle
and a joint day-to-day management.
29.11.2007 Source: Interfax
Czech firm Nove Energo to build turbocompressor unit worth EUR 14
million for blast furnace tree at Yenakiyeve steel mill
Yenakiyeve steel mill in Donetsk region, as a part of the building of
blast furnace three in 2008-2011, has signed a contract on the production
of a turbocompressor unit worth EUR 14 million (CZK 374 million) with
Czech firm Nove Energo. "The realization of the task depends on
providing the whole complex with blasting infrastructure, as the existing
turbocompressor units are outdated," reads the report. The press
service said that at present the designing of a new turbocompressor
unit has started. Metinvest-Holding said that the new turbocompressor
unit will be integrated in the control system of pump-storage-plant,
thermal blasting plant and blast furnace three. Earlier, Yenakiyeve
steel mill director general Alexander Podkorytov said that the boldest
technical decisions will be realized at the blast furnace three. The
project will be realized in three years. Investment in the building
will be USD 180 million.
28.11.2007 Source: Interfax
MD Estate buys 11% stake in Zaporizhia refractory plant
Dnipropetrovsk-based MD Estate Ltd. has bought an 11.012% stake (643,140
shares) in OJSC Zaporizhia refractory plant (Zaporizhvohneupor). As
reported, Ukraine's Antimonopoly Committee has given steelmaker Zaporizhstal
the green light to acquire more than 50% of the shares in Zaporizhogneupor,
the country's biggest producer of refractory materials, the regulator
said. Zaporizhogneupor plans to increase its statutory fund by at least
UAH 80.07 million, to UAH 156 million, through an additional issue of
shares in documentary form at the existing face value of UAH 13 each
to replenish circulating funds. The issue will be discussed at a meeting
of the shareholders scheduled for December 26, 2007.
28.11.2007 Source: Interfax
Alchevsk Iron & Steel Works launches oxygen converter
Industrial Union of Donbas (IUD) on Tuesday launched the first phase
of a new oxygen converter division at its Alchevsk Iron & Steel
Works (AMK), completing the first phase of the modernization of steelmaking
facilities at the works. The first phase, which includes one converter
that can produce 2.5 million-3 million tonnes of steel per year and
the related shop infrastructure, cost UAH 5 billion (about USD 1 billion).
The whole complex of the oxygen converter division will include two
converters with combined capacity to produce 5.5 million-6 million tonnes
of steel per year. The second converter will be launched in the second
quarter of 2008. The equipment and technology are being supplied by
Siemens-VAI. The new division was built in just 18 months. The converter
technology will reduce energy and input costs, and the latest technology
and control systems will guarantee production of high quality steel
that meets the toughest global standards. The gas scrubbing system will
recover harmful emissions at every stage of the production chain, reducing
emissions to 30 mg per cubic meter or less. Atmospheric emissions per
unit of product will decrease by at least 75%.
28.11.2007 Source: Interfax
President Viktor Yushchenko launches oxygen converter at Alchevsk
Iron and Steel Works
President Victor Yushchenko took part in oxygen converter launch at
OJSC Alchevsk Iron and Steel Works. V. Yushchenko solemnly and personally
launched the converter from its control console. Launch of new oxygen
converter at Alchevsk steel mill to create 600 new jobs, Yuschenko says.
Yuschenko has conferred the Hero of Ukraine award on Taras Shevchenko,
the director-general of the Alchevsk metallurgical plant. The award
was conferred in Shevchenko in recognition of his contribution to the
development of the Ukrainian metallurgical industry. After the ceremony
President laid a memorable container at the place of future gas power
plant construction. It shall be built in the framework of Alchevsk Works
modernization in order to improve its power supply system. Alchevsk
metallurgical plant launched operation of the first phase of an oxygen-converter
workshop with an annual capacity of 2.5-3 million tons of steel. The
Alchevsk metallurgical plant specializes in production of steel plates,
sheets, as well as bars and slabs.
27.11.2007 Source: President`s press-office / Ukrainian News
Metinvest B. V. buys 82.5% of Inhulets Ore Plant
Metinvest B.V. (the Netherlands) has become the owner of an 82.462026%
stake in Inhulets Mining, Ukraine's biggest producer of iron ore concentrate.
Inhulets is controlled by the Smart Group, which in September decided
to merge its assets with those of the Donetsk-based System Capital management's
Metinvest holding.
27.11.2007 Source: Ukrainian News
AMC permits Otranto Trading to build up stake of over 50% in Velykoanadolsky
Refractory Plant
The Antimonopoly Committee of Ukraine (AMC) has permitted Cyprus-based
Otranto Trading Co. Limited to buy shares in OJSC Velykoanadolsky Refractory
Plant in Volnovakha District in Donetsk region, which along with another
shares in the plant owned by the Cypriot company, would give the company
over 50% of the votes in the governing body of the OJSC. Velykoanadolsky
Refractory Plant is the oldest refractory plant in Ukraine, founded
in 1887.
26.11.2007 Source: Interfax
IUD to invest EUR 40 million in coking plant in Poland
Industrial Union of Donbas (ISD) plans to invest about 40 million
euros in the construction of a coking plant with capacity of 390,000
tonnes of coke per year in the Polish city of Czenstochowa, the CEO
of ISD Polska, Konstantin Litvinov told Interfax. The company has called
a tender for construction of the coke-oven battery, calling for a turn-key
plant to be completed by October 1, 2009. Litvinov said the new plant's
coke would be sold on the open market, adding that ISD had not yet considered
the issue of shipping coke to Ukrainian steelmakers.
24.11.2007 Source: Interfax
Poltava Mining owner to spend USD 158 million to expand production
Ferrexpo Plc, which owns 86% of Ukraine's top iron ore pellet producer
Poltava Mining, has launched a USD 158 million project to expand production
at the Horishne-Plavninske and Lavrikovske (GPL) deposits to about 32
million tons of ore per year by 2011 from the current 28 million tons.The
project will also entail extending the life of the mine at these production
levels to at least 2035. This expansion and mine life extension are
in addition to that detailed in the business plan associated with Ferrexpo's
listing in London in June, the company said in a press release.
23.11.2007 Source: Ukrainian Journal
Azovstal, Severstal, Rukki to supply steel for Shtokman drilling
rings
The Vyborg Shipyard (VSZ) has selected Ukraine's Azovstal, Russia's
Severstal and Finland's Rukki to supply steel for construction of drilling
rigs for Gazprom subsidiary Gazflot, the Leningrad region shipbuilder's
general director, Valery Levchenko said. In addition, Power Machines
will supply metal sections. Levchenko said about 40,000 tonnes of metal
would be needed to build two platforms, 20,000 tonnes for each. VSZ
is building two floating drilling rigs for Gazflot that will be used
at the huge Shtokman gas field in the Arctic. The first platform is
scheduled for completion in 2010 and the second in 2011.
23.11.2007 Source: Interfax
USH Ukrainian Steel Holdings Ltd. transfers 52.6% stake in Azovstal
and 60.99% stake in Avdiyivka coke plant to Metinvest B.V.
Cyprus-based USH Ukrainian Steel Holdings Ltd., which is fully under
the control of System Capital Management (SCM), has transferred a 52.634%
stake in OJSC Azovstal and a 60.9907% stake in OJSC Avdiyivka coke plant
(both in Donetsk region) to Metinvest B.V. (the Netherlands).
23.11.2007 Source: Interfax
Russia's Ingosstrakh insurer pays USD 14.4 million to Azovstal
Russia's Ingosstrakh insurance company has paid USD 14.4 million insurance
claim to Ukrainian OJSC Azovstal. Ingosstrakh in October and November
paid USD 12 million and USD 2.4 million in compensation for losses due
to the blast at OJSC Azovstal. Earlier, the company paid USD 0.99 million.
The total claim was USD 15.39 million. On March 23, 2006, an explosion
occurred at Azovstal's No. 3 blast furnace, totally destroying it. The
company incurred losses from the resulting break in production and commercial
activities. Total losses were estimated at USD 30.9 million. In August
2006, the accident was recognized as insurance event and Ingosstrakh
paid USD 0.99 million.
22.11.2007 Source: Interfax
USH Ukrainian Steel Holding Ltd. transfers 60.97% stake in Khartsyzsk
Pipe Plant to Metinvest B.V.
Cyprus-based USH Ukrainian Steel Holdings Ltd., which is fully under
the control of System Capital Management (SCM), has transferred a 60.97%
stake in OJSC Khartsyzsk Pipe Plant to Metinvest B.V. (the Netherlands).
In early October, it was reported that SCM transferred a 60.97% stake
in the plant to Cyprus-based USH Ukrainian Steel Holdings Ltd. "The
next and final stake of the SCM corporate restructuring in the mining
and metallurgical business will be a transfer of these corporate rights
to Metinvest Group, which manages SCM's mining and metallurgical business,"
read the earlier press release.
22.11.2007 Source: Interfax
Waste processing line of polymers was put into operation at Khartsyzsk
Pipe Plant
At Khartsyzsk Tube Works the project of organization the section of
waste processing line of polymers was completed. The new modern line
allows to receive the granulated polythene from the waste formed during
the process of anticorrosive coating on pipes of the large diameter.
The size of investments amounts to UAH 1.1 million. Director General
of Khartsyzsk Tube Works Andrey Shyshatskyy has commented: "Large-scale
modernization of works is carried out within the limits of strategy
of development of assets of Metinvest Group : the manufacture oriented
on performance of the international ecological norms, provides good
working conditions of the staff, high quality, which means competitive
ability of production. Clearing for operation of new line will allow
us not only to solve a problem of recycling of waste of polythene, but
also to receive the additional profit. We expect that the line will
pay back within one-two years".
16.11.2007 Source: press service of Khartsyzsk Tube Works
SCM transfers mining works' shares to Metinvest
Ukrainian "System Capital Management Holdings" transferred
mining works' shares from USH (Cyprus) to its affiliate Metinvest. According
to SCM Director General Oleh Popov, the company means to complete the
hand-over of the mining enterprises' corporate rights to Metinvest before
2007 close. SCM holds and runs assets in the mining, energy, telecommunications,
banking, insurance, media, retail, and other branches. 90 percent of
its stake belongs to Rinat Akhmetov. Metinvest produces 5 M tons of
coke and 16 M tons of iron ore per year.
15.11.2007 Source: Ukrinform
Ilyich Iron & Steel Works of Mariupol increased rolled metal
output by 1.8% in October
In October, the Mariupol-based Illich Iron & Steel Works increased
output of rolled metal by 1.8% or 8,600 tons to 488,900 tons compared
to September. In October, the enterprise increased output of steel by
4%, compared to September, or 22,700 tons to 584,100 tons, pig iron
production - by 3.5% or 15,300 tons to 451,200 tons, and agglomerate
output - by 4% or 43,500 tons to 1,129,800 tons. In January-October
2007, the plant increased output of rolled steel by 2% or 96,900 tons,
compared to the relevant period of 2006, to 4,879,600 tons. The Ilyich
metallurgical plant specializes in production of rolled sheet. It also
produces iron-ore sinter, open-hearth pig iron, cast and rolled slabs,
seamless and welded pipes, and gas cylinders. 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.
14.11.2007 Source: Ukrainian News Agency
Akhmetov snaps up mills in EU
A major Ukrainian steel holding owned by Ukraine's richest man, Rinat
Akhmetov, is in the process of acquiring steel production assets in
the European market.
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14.11.2007 Source: Kyiv Post
Metinvest has signed agreements to buy steel factories in the UK
and Italy
Metinvest, the steel holding controlled by Ukraine's richest man, Rinat
Akhmetov, has signed agreements to buy steel factories in the UK and
Italy, marking the continued expansion of Ukraine's steel groups in
Europe. Metinvest announced on Monday that a subsidiary had signed agreements
to purchase Italy's Trametal and Spartan UK from the Malacalza family
for an undisclosed amount. The deal is thought to be worth more than
EUR 500m (USD 727m). Regulatory approval is expected within 60 days.
Metinvest, one of the largest steel groups in Ukraine, itself ranked
as one of the top 10 steel-exporting countries, plans to combine Trametal
and Spartan with its Italian steel-rolling company, Ferriera Valsider,
to create a company with more than 1m tonnes of plate rolling capacity
in the European Union.
13.11.2007 Source: Financial Times
Zaporizhstal suspends furnace No. 5 for repairing
The Zaporizhstal metallurgical plant has suspended blast furnace No.
5 for overhauling. The plant suspended the furnace on November 9; the
second rate overhaul is supposed to be over in 35 days. The plant intends
to upgrade the furnace structure almost completely. Zaporizhstalbud-1
is general contractor for performing the repairs. Previous repair of
the furnace was carried out twenty years ago. The plant does not announce
the repairing cost. Zaporizhstal produces hot- and cold-rolled steel
from carbon, low-alloy, alloyed, and stainless steel. Zaporizhstal Iron
& Steel Works is traditional partner of the Metal-Forum of Ukraine.
13.11.2007 Source: Zaporizhstal press service
At Khartsyzsk Tube Works assembling of two new mills
At Khartsyzsk Tube Works assembling of two new mills for welding of
inner weld seams on pipes of large diameter was completed. The supplier
of equipment was the company "Uhrhan & Schwill" (Germany)
- the world leader in electroarc automatic welding. Assembling and adjustment
were completed by technical services of Khartsyzsk Tube Works in association
with experts of the company-supplier. The size of investments into the
new equipment is nearby 2 million USD.
10.11.2007 Source: press service of Khartsyzsk Tube Works
TMK, Interpipe fail to agree on merger
Russia's Pipe Metallurgical Company (TMK), one of the world's largest
steel pipe producers, and Ukraine's Interpipe corporation have not reached
agreement on merger, Konstantin Semerikov, TMK's general director, told
a press conference. "Interpipe decided to go for an IPO, and there
have been no consultations or talks since. We're in the same state right
now," Semerikov said. In May of this year, TMK announced that it
was in discussion with Interpipe regarding a possible partnership. The
Russian and Ukrainian media interpreted this as a possible merger. If
the parties had agreed in this regards, their combined annual output
would have come to 4.2 million tonnes of pipe, thus overtaking the current
world lead in pipe production, Luxembourg-based Tenaris.
10.11.2007 Source: Intefax
Artemovsk Non-Ferrous Metals Processing Plant to issue new shares
Shareholders of the Artemovsk Nonferrous Metals Processing Plant will
hold an extraordinary general meeting on December 24 to consider increasing
charter capital by 146% to UAH 252.965 million with a new share issue.
The plant intends to place 600,011,763 shares with par value of UAH
0.25 each. Shareholders will also decide on the form of the placement
- private or public - and its timeframe. Artemovsk Non-Ferrous is Ukraine's
only producer of flat and round products made from copper, its alloys
and other nonferrous metals. The plant's main products are sheet, strip,
tubes, rods, electrical wire rods, wire, plumbing fixtures and consumer
products. The plant can annually produce 72,000 tonnes of castings,
7,000 tonnes of copper roll, 45,000 tonnes of brass roll and 2,000 tonnes
of copper-nickel roll.
10.11.2007 Source: Interfax
Dzerzhynsky Iron & Steel Works to up roll output 2.2% in 2007
The Dzerzhynsky Iron & Steel Works (DMK) plans to increase production
of commercial roll by 2.2% this year, to 3.367 million tonnes. The company
aims to produce 3.592 million tonnes of pig iron and 3.815 million tonnes
of crude steel in 2007, respectively 11.9% and 5.1% more than in the
previous year. DMK general director Oleh Dubina said at a shareholder
meeting at the end of October that the plant aims to achieve a 15% profit
margin, and reduce production and sales costs.
08.11.2007 Source: Interfax
Ukraine announces tender for sale of 25% stake in Palmash plant
Ukraine's State Property Fund has announced a tender for the sale of
a 25% plus one share stake in Pavlohrad-based OJSC Palmash plant. According
to an announcement published in the Vidomosti Pryvatyzatsii newspaper
on Wednesday, the initial price of the stake is UAH 1.723 million. The
winner of the tender is obliged to increase sales from UAH 4 million
to UAH 4.4 million within five years, and partially pay off the accounts
payable of the enterprise, worth UAH 2.48 million. According to the
SPF, the plant has been undergoing bankruptcy procedures since July
2006. Palmash plant produces casting equipment and spare parts for it.
08.11.2007 Source: Vidomosti Pryvatyzatsii
Ukraine should create pool of companies to complete KGOKOR construction
Ukraine should not sell Kryvy Rih oxidized ore mill (KGOKOR) to foreign
investors, but should create a pool of Ukrainian companies to complete
the construction of the facility, Vice-President of Industrial Group,
a managing company of the Industrial Union of Donbas, Oleksandr Pylypenko
told Interfax-Ukraine. According to him, after the construction is completed,
the state should sell a minor stake to the pool participants and to
keep a controlling interest in order to impose a stabilizing influence
on domestic iron ore raw materials (IORM) market. "Since Ukraine
lost Ukrrudprom [the state JSC that united mining and metallurgical
assets], it would be more correct for the state not to sell KGOKOR to
foreigners, but to sell a minor stake in it to a pool of Ukrainian participants,
this way, becoming a player on the IORM market. In order to remain the
regulator, control is needed, and the partners in the project will be
those who are interested in it," Pylypenko said, adding that this
is the conclusion drawn up on the basis of state interests, not the
interests of the IUD. He added that Mittal Steel has never been a Ukrainian
investor. "This is a transnational company, which will be guided
not by Ukrainian but by transnational interests," he said.
07.11.2007 Source: Interfax
ArcelorMittal hails start of dialogue on choosing investor for KGOKOR
construction
Arcelor Mittal, the world's largest steel making corporation, has welcomed
the actions of Ukrainian authorities to hold an open dialogue on the
completion of the building of Kryvy Rih Mining and Enrichment Plant
for Oxidized Ores (KGOKOR). "We hail the open dialogue with the
Ukrainian government on KGOKOR's construction. Today, it is necessary
to find a solution that will match the economic interests of Ukraine
and will also take into account the legal interests of all countries
taking part in the project, as well as Ukraine's international commitments.
Arcelor Mittal remains active participant of this process". According
to the press release, Arcelor Mittal views its proposals on the construction
of KGOKOR as matching the economic, ecological and technical requirements
of the project, as well as taking into account the interests of all
international participants in the project.
05.11.2007 Source: press service of OJSC Arcelor Mittal Kryviy Rih
ArcelorMittal Kryviy Rih increases roll output 3.8% in 10 months
Arcelor Mittal Kryviy Rih increased roll production tentatively 3.8%
year-on-year to 5.912 million tonnes in January-October 2007. In the
ten months, the company's steel production grew 8.5% to 6.791 million
tonnes, pig iron - 7.7% to 6.031 million tonnes and sinter - 6.5% to
9.995 million tonnes. In October, the company produced 588,000 tonnes
of roll, 679,000 tonnes of steel, 592,000 tonnes of pig iron and 968,000
tonnes of sinter. In the ten months, the company's coke producing subsidiary,
increased production 13.5% to 2.52 million tonnes while its ore mining
division's output of iron concentrate grew 10.3% to 7.036 million tonnes,
with iron ore production up 1.7% to 1.631 million tonnes. Arcelor Mittal
Kryviy Rih is Ukraine's largest metal producer and partner of the Metal-Forum
of Ukraine.
03.11.2007 Source: Ministry of Economy of Ukraine
MetalUkr lends USD 200 million to its subsidiary
Cypriot MetalUkr Holding Limited, which was created during the restructuring
of mining and metallurgical assets of Donetsk-based CJSC System Capital
Management, has opened a USD 200 million credit line for OJSC Yenakiyeve
Metallurgical Plant. As the plant reported, the credit line was opened
for five years with an interest rate of three-month Libor +7.5%. The
loan is being attracted to replenish the circulating assets of the enterprise.
As of early 2007, the net assets of OJSC Yenakiyeve metallurgical plant
were estimated at UAH 729.358 million, while its total assets were estimated
at UAH 2.1 billion. According to the report, the loan facility will
be issued in several tranches.
03.11.2007 Source: Interfax
Konstantinovka Metallurgical Plant declared bankrupt
Donetsk regional economic court, with its ruling of October 12, 2007,
declared OJSC Konstantinovka metallurgical plant bankrupt and initiated
liquidation procedures, which will take six months. The bankruptcy of
the plant was initiated by Donetsk regional economic court in May 2004.
In 2004, the company had net losses of UAH 6.008 million, its net sales
were UAH 7.417 million, and its gross income was UAH 8.9 million.
03.11.2007 Source: Interfax
Nikopol Ferroalloy Plant raised ferroalloy output 20.6% in 10 months
Nikopol Ferroalloy Plant (NFP), Ukraine's biggest ferroalloy producer,
raised ferroalloy production 20.6% year-on-year in January-October to
871,300 tonnes. The company produced 646,600 tonnes of silicon manganese
and 224,700 tonnes of ferromanganese, up 27.5% and 6.65 year-on-year,
respectively. NFP produced 76,800 tonnes of ferroalloys in October.
NFP raised ferroalloy output 10.2% to 892,900 tonnes in 2006.
03.11.2007 Source: Interfax
Zaporizhia Ferroalloy Works raised ferroalloy output 1.26% in 10
months
Zaporizhia Ferroalloy Works (ZFW) told Interfax that it raised ferroalloy
production 1.2% year-on-year in January-October to 438,200 tonnes, including
39,800 tonnes in October. ZFW produced 290,400 tonnes of silicon manganese
in the 10 months, down 4.7% year-on-year, and 64,400 tonnes of ferromanganese,
down 9.6%, but 69,100 tonnes of ferrosilicon, up 34.2%, and 14,300 tonnes
of other ferroalloys. ZFW produces all of the country's medium- and
high-carbon ferromanganese and all of its 90%-metallic manganese.
03.11.2007 Source: Interfax
Azovstal put into operation an air separation unit VRU-60
On the 1st of November PJSC Azovstal Iron and Steel Works of Metinvest
Group solemnly put into operation an air separation unit VRU-60. Azovstal
air separation unit is uniquely designed considering the highest international
standards and it has no analogues among the steelmaking and mining enterprises
of Ukraine and CIS. National and foreign companies were invited to perform
the project: "Kriospektr" Ltd (Ukraine), KSP-2 "Ukrenergochermet"
(Ukraine), "Air Liquide" (France), "Siemens" (Germany)
and others. The construction of air separation unit became one of the
biggest power saving projects of the Works. Commissioning of the new
unit will allow Azovstal to solve the problem of oxygen shortage and
thus it will be one of the steps to reach a strategic goal which is
the production of 8 millions tons of high quality steel per year. Total
amount of investment into the project was approximately UAH 364 million.
01.11.2007 Source: press service of Azovstal
