News from Ukrainian Companies |
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December 2007
ArcelorMittal Kryviy Rih to invest over UAH 2 billion in technical re-equipment and construction in 2008
ArcelorMittal Kryviy Rih, Ukraine's biggest integrated steel producer, plans to invest over UAH 2 billion in the construction and technical re-equipment, according to the company's financial target for 2008, the company reported on Thursday. In addition to building new facilities, the company plans to continue developing existing ones. The company will continue working on the three-year modernization program for its mining and concentrating division, with USD 243 million allocated for new equipment, modernization and expansion. Investment in the energy-saving projects in 2008 would more than triple to UAH 35.5 million. One key element of this will be to use coke and blast furnace gas as a partial, and sometimes complete, substitute for natural gas. "By 2012 we should have the following figures: ore production 30 million tonnes, concentrate production 14.7 million tonnes, agglomerate output 19.6 million tonnes, coke output 4.3 million tonnes, cast-iron production 10.7 million tonnes, steel production 12 million tonnes, billet output 5 million tonnes, slab billet output 5 million tonnes. The planned orders portfolio should be the following: reinforcement bar 3.8 million, rod 2 million tonnes, hot-rolled output 4.5 million tonnes," reads the document. ArcelorMittal Kryviy Rih is Ukraine's biggest rolled steel producer specializing in long-length rolled steel production and partner of the Metal-Forum of Ukraine.
29.12.2007 Source: Interfax
ArcelorMittal Kryviy Rih boosts pretax profit 36% in January-November
ArcelorMittal Kryviy Rih increased pretax profit by 36.3% year-on-year
to UAH 4.906 billion in the first eleven months of 2007, the company,
formerly known as Kryvorizhstal, reported. Sales grew to UAH 17 billion,
from UAH 12.926 billion in the same period last year. "This made
it possible to invest more than UAH 1 billion in fixed assets and thus
fulfill one of the key conditions of the investment obligations of the
sales agreement for Kryvorizhstal," the company said. Capital expenditures
totalled UAH 1.162 billion, which was UAH 160 million more than planned.
This included UAH 351.3 million spent in the mining and concentration
division, UAH 22.1 million in the deep ore-mining department, UAH 379.2
million in the coke-chemical division, and UAH 409.2 million in the
metallurgical complex. Spending on environmental projects topped UAH
331 million, nearly double the UAH 176.2 million planned for the year.
ArcelorMittal Kryviy Rih is Ukraine's biggest integrated steel producer
and partner of the Metal-Forum of Ukraine.
29.12.2007 Source: Interfax
Ilyich Iron and Steel Works to trim natural gas consumption by 26.9%
to 950 million cubic meters a year until 2013
29.12.2007 Soutrce: Ukrainian News Agency
Palmary increases share in Australia's CSM to 74.67%
Palmary Enterprises Limited, which belongs to the co-owner of Ukraine's
PrivatBank Hennadiy Boholyubov, has increased its stake of voting shares
in Australia's Consolidated Minerals (CSM) from 68.19% to 74.67%. The
company said on Thursday that Palmary bought shares from shareholders
who accepted its offer to buy CSM. The number of shares belonging to
Boholyubov's company grew from 169.371 million to 185.888 million.
28.12.2007 Source: Interfax
Zaporizhstal buys in Russia coking coal mining and dressing facilities
Zaporizhstal Iron and Steel Works reported about the purchase of assets
for the extraction and enrichment of coking coal in Russia. This will
make it possible to meet the company's demands for coal by 35%. Those
are coal dressing factory Production Association Sholokhovskoe, and
licenses for the development of a sector at the Bystrianskoe deposit
in Rostov region. A Zaporizhstal spokesman said that a Bystrianskaya
1, 2 mine will be built at the site for the extraction of coking coal,
with an annual capacity of 750,000 tons. In his words, the capacities
of Bystrianskaya 1, 2 will make it possible to load Sholokhovskoe by
50%. In its turn, the factory meets by 50% the demands of the Zaporizhstal-controlled
Zaporizhkoks for coking coal, or by 35% the demands of the plant itself.
Zaporizhstal is the fourth-largest steel mill in Ukraine and partner
of the Metal-Forum of Ukraine.
27.12.2007 Source: Ukrinform
Interpipe Nikopol Pipe Company CJSC and Interpipe Niko Tube CJSC merge
into Interpipe Niko Tube LLC
27.12.2007 Source: Ukrainian News Agency
IFC approves USD 350 million loan for Industrial Union of Donbass
to modernize steel mills
The International Finance Corporation (IFC) will lend USD 100 million
to the Industrial Union of Donbas (IUD) and arrange a syndicated loan
worth USD 250 million for modernization, an improvement in competitiveness,
and implementation of environmental programs at the group's enterprises.
T he IFC board of directors approved the project on December 20 and
the documents under the project are to be signed. The total value of
the project is estimated at USD 3 billion. The funds will be transferred
to OJSC Alchevsk Steel Mill in Luhansk region and OJSC Dniprovsky Dzerzhynsky
Steel Mill in Dnipropetrovsk region, which are incorporated into the
Industrial Union of Donbas. Apart from the above-mentioned steel mills,
IUD's Ukraine-based assets also include Alchevsk Coking and Chemical
Plant, Hungarian-based Dunaferr steel mill and Polish-based Huta Stali
Czestochowa.
26.12.2007 Source: Interfax
Zaporizhstal increases statutory fund by UAH 450 million to
UAH 660.9 Million
26.12.2007 Source: Ukrainian News Agency
Zaporizhstal to form Swiss affiliate for support to foreign stockholders
Shareholders of metallurgical mill Zaporizhstal decided to set up a
subsidiary, ZS Inform AG, in Zurich (Switzerland) for support to the
company's foreign shareholders. This decision was passed at the shareholders'
meeting in Zaporizhia on December 21, says Anatoliy Salamatov, deputy
director general for corporate rights. The company's statutory fund
will make 100,000 Swiss francs. The main objective of this company will
be protection of rights and legal interests of shareholders, support
to them through providing information or by other means. Zaporizhstal
produces hot- and cold-rolled milled goods of carbon, low-alloy, alloy
and stainless steels. 44.75% of Zaporizhstal belong to Global Steel
Investments Ltd. (Great Britain). Zaporizhstal is the fourth-largest
steel mill in Ukraine and partner of the Metal-Forum of Ukraine.
25.12.2007 Source: Ukrinform
Novokramatorsk Machine-Building Plant supplies mining equipment
to Russia
The Novokramatorsk Machine Works has supplied deep mining lifts to the
Chebachiy mine of the Verkhneuralskaya Ruda company in Russia. As chief
constructor the Works' mining equipment and press-forging production
unit Olha Kulyk said, the consignment included two lifts as well as
a shaft signal system. The lifts are designed to ensure the miners'
security and increase production. Verkhneuralskaya Ruda intends to invest
USD 400 M and USD 900 million into its mines' upgrading in 2008 and
2009 respectively.
The Novokramatorsk Machine Works specializes in production of metallurgical
machinery and equipment as well as mining and other equipment.
25.12.2007 Source: Ukrinform
Antimonopoly Committee allows Linde AG to purchase over 50% in Kiev
Carbon Dioxide Plant
25.12.2007 Source: Ukrainian News Agency
For the first time the annual output of ISTIL (Ukraine) amounts
to 1 mln. tons of steel
On December 23 ISTIL (Ukraine) produced the millionth ton of steel.
Consequently the production volume of liquid steel for the year 2007
will exceed 1 mln. tons. The staff of the Mill has been striving for
this target for several years, upgrading progressively its production
facilities. The Mill produced 811 thousand tons of steel in 2005 and
920,1 thousand tons in 2006. In order to increase the production volume
the technical upgrading project was developed at the Mill. Within the
framework of this project more powerful ABB transformer was installed
at the EAF Danarc. It enabled to reduce the tap to tap time and to increase
the steel output. Farooq Siddiqui, Senior Vice-President of ISTIL(Ukraine),
felicitated the employees of the Mill on this remarkable event and wished
a fruitful and stable work in 2008. Mini Steel Mill ISTIL is partner
of the Metal-Forum of Ukraine.
25.12.2007 Source: press service of ISTIL
Krasnodonvuhillia testing container gas-utilizing plant at mine
Krasnodonvuhillia in Luhansk region has started industrial tests of
a container gas-utilizing plant at the Molodohvardiyska mine. The company
said that tests are conducted in the light of a project on degassing
and utilization of methane at the Molodohvardiyska mine, which Krasnodonvuhillia
is realizing jointly with Ukrainian-German Kyiv-based Eko-Alliance Ltd.
The project foresees the upgrade and expansion of the degassing complex
of the mine in order to increase volumes of degassing from coal layers
and increase the level of industrial safety with the simultaneous creation
of an efficient system for utilization to cut methane emission in the
air and increase its use for the needs of Krasnodonvuhillia.
25.12.2007 Source: Ukrainian Journal
Artemivsk Nonferrous Metal Processing Plant decides to increase
statutory fund by UAH 66.5 million to UAH 169.5 million
Energomashspetsstal decides to increase statutory fund by UAH
60.7 million to UAH 100 million
Kramatorsk Heavy Machinery Plant decides to Boost statutory fund
by UAH 48.9 million to UAH 50 million
25.12.2007 Source: Ukrainian News Agency
Zaporizhstal's shareholders approve results of company stocks swap,
allocate 2% of profit for dividends
Shareholders in OJSC Zaporizhstal Iron and Steel Works have approved
a report on the results of the company's shares exchange to shares of
five companies, which are merged with the OJS, a representative of Zaporizhstal
said. He said that shareholders at a meeting held on December 21 made
the decision. He said that among the five merged companies are Zaporizhstal
Trade House Ltd. with the statutory fund of UAH 180 million, Steel Track
Ltd. with the statutory fund of UAH 67.5 million, Trade House of Refractory
Products Ltd. with the statutory fund of UAH 67.5 million, Zaporizhstal-Invest-Torhprom
Ltd. with the statutory fund of UAH 90 million, and Tsentrostal Ltd.
with the statutory fund of UAH 45 million. Shareholders at the meeting
decided to allocate 2% of profit for 2006 to pay dividends, which is
over UAH 14 million. The rest of the profit will be allocated to develop
the company," he said. Zaporizhstal is the fourth-largest steel
mill in Ukraine and partner of the Metal-Forum of Ukraine.
24.12.2007 Source: Interfax
Metinvest and Smart-Holding unite assets
The Metinvest group of Rinat Ahmetov and Smart-Holding of Vadym Novynskyi
are uniting their assets. According to a joint statement of the companies,
Smart N.V. owns 25% +1 shares of Metinvest B.V. The Smart-Holding in
turn passed 82.46% shares of the Inhuletskyi mine and 90.18% of the
Makiyivka metallurgic plant and 90% of the Promet Steel to the Metinvest.
The parties agreed to pass shares of the South Mine to the Metinvest.
22.12.2007 Source: Ukrinform
Evraz to expand presence in Ukraine
After the acquisition of metallurgic assets of Privat Group, Evraz Group
would continue expanding its own presence in Ukraine, according to Russian
Ambassador to Ukraine Viktor Chernomyrdin. "If they made this step,
they decided to buy only to invest [in Ukraine]. I support this,"
he said in Kiev on Thursday. As reported, Evraz is acquiring iron ore
producer Sukha Balka (99.25% of shares), Dnipropetrovsk Metallurgical
Plant (95.57%) and coke producers Bahliykoks (93.74%), Dniprokoks (98.65%)
and Dniprodzerzhynsk Coke Chemicals Plant (93.83%). Evraz plans to close
the acquisition in the first quarter of 2008.
21.12.2007 Source: Interfax
Palmary enterprises prolongs Australian CSM takeover offer until
January 1
A takeover offer of Belize-based Palmary Enterprises Ltd., which belongs
to the co-owner of Ukraine's PrivatBank Hennadiy Boholyubov, to buy
Australia's Consolidated Minerals (CSM), has been prolonged from December
20 until January 1, 2008. Palmary has increased its stake of voting
shares in Australia's Consolidated Minerals (CSM) from 61.77% to 68.19%.
The company said on Wednesday that Palmary bought shares from shareholders
who accepted its offer to buy CSM. The number of shares belonging to
Boholyubov's company grew from 153.433 million to 169.371 million. Palmary
has the right to prolong its takeover offer further.
21.12.2007 Source: Interfax
Ukrainian-backed firm acquires 61% of Australia's CSM
Belize-based Palmary Enterprises Ltd., which belongs the co-owner of
Ukraine's PrivatBank Hennadiy Boholyubov, has now increased its interest
in Australian manganese miner Consolidated Minerals (CSM) to 61.77%.
Palmary has improved its takeover offer for CSM from 4.7 to 5 Australian
dollars. Rival bidder Pallinghurst has said it would not raise its own
price and said it would sell all of its own shares in CSM at 5 dollars
within two weeks. This values the company at USD 1 billion. CSM's board
of directors recommended that shareholders accept the takeover bid.
Palmary said in a statement for the Australian Stock Exchange last week
that it expected the remaining shareholders to accept its purchase offer
fairly soon.
20.12.2007 Source: Interfax
Antimonopoly Committee of Ukraine approved concentration of over
50% in Makeyevka Steel by Metinvest
In line with the decision on consolidation of the mining and metals
businesses of SCM Group and Smart-Holding, Metinvest (SCM's subholding)
obtained approval from Antimonopoly Committee of Ukraine to concentrate
over 50% of shares in Makeyevka Steel Plant. Upon receipt of all necessary
approvals and clearances 90% of shares will be transferred to Metinvest
Group. According to Igor Syry, Metinvest's CEO, the transfer of the
shareholding will be completed in Q1 2008. Mr. Syry stated that Metinvest
has proceeded to elaboration of a development plan for the plant as
a part of Metinvest vertically integrated structure. Makeyevka Steel
Plant specializes in production of foundry and steel-making pig iron,
billets, rounds, shaped sections, wire rod, reinforcement bars.
20.12.2007 Source: press service of SCM
ZAZ sees 47% rise in car output in 11 months
CJSC Zaporizhia car plant, also known as ZAZ, Ukraine's largest passenger
car manufacturer, boosted output by 46.8% from January to November 2007,
year-over-year, to 252,652 cars. The company manufactured 1,046 Tavria
cars (7.4 times down year-over-year), 3,614 Tavria-Pickup cars (0.5%
up), 14,596 Slavuta cars (13% down), and 21,135 Daewoo Sens cars (9.4%
up). The output of Daewoo Lanos cars in the seven months grew by 51.1%,
year-over-year to 55,515, that of Opel-CKD cars increased by 34%, to
6,494, and that of Opel Astra cars rose by 42.4%, to 1,744. Over the
period under review, the plant cut the output of VAZ-21093 cars to 3,074,
however it increased the production of VAZ-21099 cars by 11.7%, to 15,800.
In addition, it put out 10,527 VAZ-2107 cars (production started in
June 2006). VAZ cars are put out under a joint program with the Bogdan
Corporation. In January through November the plant also produced 2,743
Chery cars and 3,417 Chevrolet Aveo cars, which were not produced in
2006. Moreover, the plant produced 112,947 cars of other models, including
trucks and buses.
19.12.2007 Source: Interfax
Foreign investors to finance construction of mine in Lviv region
Australia's Control Components Inc. in 2008 will start building a first
mine at the Liubelia coking coal field, head of the Lviv regional state
administration, Petro Oliynyk, said. He said that CCI-Liubelia Ltd,
the daughter companies of Control Components Inc., will order the building
of the mine. OJSC Luhanskshakhtoprokhodka Group, with which the talks
are being held, could be a chief constructor of the mine. Oliynyk said
that the explored deposits of the Liubelia coking coal field are 86
million tonnes, and the mine' capacity should be 2.1 million per year.
He said that the project is estimated at UAH 1.5 billion.
17.12.2007 Source: Interfax
L.S.H.S. Industrial Steel Holding gains control of Ukrainian pipe
maker DTZ
Cyprus-based L.S.H.S. Industrial Steel Holding Co Limited has joined
the supervisory board of the Dnipropetrovsk Pipe Mill (DTZ) as the owner
of a 53.331% stake in the Ukrainian company, DTZ reported on December
13, citing a decision made at a shareholder meeting on December 11.
Shareholders voted Industrial Union of Donbass (IUD) representative
Serhiy Laptev and the commercial director of IUD affiliate Ukrainian
Mining and Metallurgical Company off the board, while Valeriy Laptev,
chief engineer at IUD affiliate Region was voted onto the board. DTZ's
largest shareholders at the end of 2006 were Lindsell Enterprises Limited
of Cyprus with 5.277%; Reeferway Limited (British Virgin Islands) with
22.592%; Kyiv-based Altera Asset Management's Kremen-Invest venture
fund with 18.668%; Kyiv-based Avtoalyans-XXI Vek's Investment Technologies
Fund with 9.472%; and Bondline Limited of Cyprus with 24.266%.
17.12.2007 Source: Interfax
Nikopol Pivdennotrubny plant sells 25% stake in Centravis Production
Ukraine to Investtechnologies Ltd.
OJSC Nikopol Pivdennotrubny plant has sold a 25.00021% stake in CJSC
Centravis Production Ukraine to Investtechnologies Ltd. Investtechnologies
Ltd. was not shareholder in the company before buying this stake. CJSC
Centravis Production Ukraine (earlier CJSC Nikopol Stainless Pipe Plant)
is the only stainless pipe producer in Ukraine. It produces over 1,000
types of pipes from over 60 types of steel according to the U.S. ASTM
standards, German DIN standards, French NF standards, and Russian GOST
and TU standards.
17.12.2007 Source: Interfax
Alchevsk Metallurgical Plant Increases Agglomerate Output By
8.4% To 406,300 Tons In November
Arcelor Mittal Kryvyi Rih Rolled Metal Production 3.7% Down To
566,000 Tons In November
Azovstal Reduces Steel Production By 11% To 514,000 Tons In November
Dniprospetsstal Electric Steel Output 6.2% Down To 45,100 Tons
In November
Dniprovskyi Metallurgical Plant Increases Rolled Metal Output
By 16.8% To 276,000 Tons In November
Donetskstal Cuts Open-Hearth Steel Output 17.5% To 71,700 Tons
In November
Makiivka Metallurgical Plant Reduces Rolled Steel Production
By 14.2% To 97,400 Tons In November
Petrovskyi Metallurgical Plant Reduces Production Of Rolled Steel
By 0.9% To 99,000 Tons In November
Zaporizhstal reduces Rolled Metal Production By 2.6% To 305,000
Tons In November
17.12.2007 Source: Ukrainian News Agency
Evraz Group buys 50% of one of Ukraine's biggest mining-dressing
works
The mining metallurgical industrial Evraz Group, in addition to five
plants it announced to buy in Ukraine, also bought 50% shares of one
of the biggest in Ukraine South Mining-Dressing Works, estimated at
USD 1.3-1.6 billion, the chief shareholder of the Evraz Group Lanebrok
Ltd announced. Ukrainian shareholders of the Ukrainian business group
Privat will gain USD 1 billion in cash and 8.9% of Evraz shares to the
tune of 2.5 bn. USD from the Lanebrok for their assets. Evraz will have
to compete with the MetInvest Group of Rinat Akhmetov for the rest of
the plant's 50% shares. The South Mining-Dressing Works (Dnipropetrovsk
region) in 2006 produced 8.71 million tons of iron-ore concentrate and
4.65 million tons of agglomerate. Before the deal 50% of the plant belonged
to the Privat Group, other 50% belongs to the Smart Group of Vadim Novinskiy.
15.12.2007 Source: Ukrinform
Evraz to pay USD 2 - 2.2 billion for Ukrainian assets
Evraz Group will pay a total consideration of USD 2 - 2.2 billion for
the Ukraine-based assets that it intends to acquire from the Privat
Group, including approximately USD 1 billion cash, Evraz said in a statement.
Evraz Group's core shareholder, Lanebrook Limited, has already bought
the assets in question and will sell them on to Evraz. "The acquisition
of the assets has already been closed. Lanebrook will sell stakes in
the Ukrainian enterprises to Evraz Group," a Lanebrook representative
said. Going by the amount that Evraz will spend on the assets and the
Russian group's current capitalization, Lanebrook will be able to increase
its stake in Evraz from 83% to 86%. Evraz is acquiring iron ore producer
Sukha Balka (99.25% of shares), Dnipropetrovsk Metallurgical Plant (95.57%)
and coke producers Bahliykoks (93.74%), Dniprokoks (98.65%) and Dniprodzerzhynsk
Coke Chemicals Plant (93.83%).
14.12.2007 Source: Interfax
Palmary gains control of CSM
Belize-based Palmary Enterprises Ltd., which belongs the co-owner of
Ukraine's PrivatBank Hennadiy Boholyubov, has now increased its interest
in Australian manganese miner Consolidated Minerals (CSM) to 50.68%.
Palmary said in a statement for the Australian Stock Exchange that it
expected the remaining shareholders to accept its purchase offer fairly
soon. Palmary last week improved its takeover offer for CSM from 4.7
to 5 Australian dollars. Rival bidder Pallinghurst said it would not
raise its own price and said it would sell all of its own shares in
CSM at 5 dollars within two weeks. This values the company at USD 1
billion.
14.12.2007 Source: Interfax
Interpipe Nyzhniodniprovskyi Pipe Rolling Plant increases steel
pipes output by 13% in November
In November, the Interpipe Nyzhniodniprovskyi Pipe Rolling Plant (Dnipropetrovsk
region) increased steel pipes output by 13% or 5,800 tons, compared
to October, to 50,700 tons. In November the plant increased steel output
by 11.7% or 6,800 tons to 65,100 tons and reduced production of ready-made
rolled metal (wheels and rims for trains) by 6.9% or 1,200 tons to 16,300
tons. In January-November 2007 the plant increased steel pipes output
by 2.2% or 11,900 tons, compared to January-November 2006, to 550,300
tons.
13.12.2007 Source: Ukrainian News Agency
Dnipropetrovsk Pipe Plant retains steel pipes output at 14,700
tons in November
Interpipe Novomoskovsk Pipe Plant reduces steel pipes output
by 6.5% to 24,000 tons in November
Khartsyzk Pipe Plant reduces steel pipes production by 8.5% to
26,000 tons in November
13.12.2007 Source: Ukrainian News Agency
Metinvest Holding completes rebranding of marketing channels and
presents restructured sales system of steel and rolled division
Regional ore mining leader and one of the major players on the international
market of black metallurgy Metinvest Holding has presented a restructured
steel and rolled iron sales service. As Metinvest Sales Director Andriy
Parkhomchuk said, after reorganization the exports of the company will
be carried out by Metinvrest International S.A., while wholesale supplies
within Ukraine and to the CIS will be the responsibility of Metinvest-Ukraine.
Retail sales will be handled by Metivest SMTS. Metinvest Holding is
owned by Dutch-based Metinvest B.V. (51.15% stake) and Ukraine's System
Capital Management (48.85%).
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12.12.2007 Source: press service of Metinvest
Metinvest-SMC to sell 620,000 tons of metalware in Ukraine,
Serbia in 2008
Metinvest Eurasia aiming to sell 591,000 tons of metal products
in Russia in 2008
Metinvest Ukraine to sell 1.9 million tons of metal products in
Ukraine and CIS in 2008
12.12.2007 Source: Ukrainian News Agency
Rinat Akhmetov to increase sales of rolled products to Russia
In 2008 LLC "Metinvest Eurasia", which is a part of Metinvest
Group, is going to sell on the Russian market about 490 thousand tons
of long rolled products (reinforcement, I-beams, channels and corner
frames) and more than 100 thousand tons of flat products. The information
was reported by Dmitriy Baranov, the General Director of "Metinvest
Eurasia", during the presentation of the new Sales Service of Steel
and Rolled Products Division of LLC "Metinvest Holding" in
Kyiv on Tuesday. To his words LLC Metinvest Eurasia was created at the
end of 2007. He also reported that in 2006 the Group sold on the Russian
market 17.6 thousand tons of sheet products and 179.5 thousand tons
of long products (in total 197.1 thousand tons of metal products). In
2007 the Company is expected to sell 374.1 thousand tons of metal products
on the Russian market: 46.5 thousand tons of sheet products and 327.6
thousand tons of long products. As it was reported earlier "Metinvest
Holding" had restructured its sales outlets. "Metinvest Eurasia"
was created to represent the interests of the Company on the Russian
market.
12.12.2007 Source: Ukrrudprom
Denker to invest EUR 45 million in upgrade of Silur and Stalkanat
by 2012
Denker industrial and investment company Ltd., a strategic investor
in two large hardware companies in Ukraine - OSJC Silur in Khartsyzsk
and Odesa-based OJSC Stalkanat - plans in 2008-2011 to invest EUR 45
million in upgrading the two plants. Denker Board Chairman Serhiy Faiermark
has told Interfax-Ukraine that at present a comprehensive program for
technical upgrading, which will be carried out in stages, has been drawn
up. "We'll upgrade the whole metallurgic complex at the two plants,"
he said. The upgrading of equipment has started at the two plants. "In
the coming years, the profit earned by the companies will be re-invested
into the companies' development," he said. Ukrainian hardware plants
work with outdated equipment as a rule, and some of them work with worn
out machinery, which results in the pace of growth in production costs
of hardware being considerable. As for production costs, he said that
natural gas occupies a small share in the production cost for hardware,
and thus scarcely impacts hardware plants. The cost of raw materials
defines the cost of the products.
12.12.2007 Source: Interfax
VTB Bank grants USD 16.8 million credit to metallurgic center affiliated
with Zaporizhstal
Kyiv-based VTB bank (formerly Mriya) granted a one-year credit worth
USD 16.8 million with a rate of 12.5% per annum to Metallurgical Center
(MC) Ltd. (Kyiv), which is affiliated with Zaporizhstal metallurgical
plant. The decision was passed at a general meeting of MC's founders
meeting on November 9, and the corresponding agreement between the bank
and MC was signed on November 26. The credit funds will be used to replenish
working capital and support MC's business activities.
12.12.2007 Source: Interfax
Kyiv Authorities to sign tram manufacture memorandum with Siemens
Kyiv City Administration is about to sign a memorandum with Siemens
on the production of European-type trams. A prototype of the tram Siemens
plans to manufacture in Kyiv was demonstrated at an event in Kyiv on
Wednesday with the participation of Kyiv Mayor Leonid Chernovetsky.
As Chernovetsky said, the city authorities intend to revive Kyiv's tram
network, which was partially dismantled by the previous authorities.
He said that Kyiv's city infrastructure is such that its streets have
little carrying capacity, "therefore we prefer a modern, high-speed
means of transportation."
12.12.2007 Source: Interfax
Palmary increases share in Australia's CSM to 49.75%
Palmary Enterprises Limited, which belongs to the co-owner of Ukraine's
PrivatBank Hennadiy Boholyubov, has increased its stake of voting shares
in Australia's Consolidated Minerals (CSM) from 37.7% to 49.75%. The
number of shares belonging to Boholyubov's company grew from 87.319
million to 115.233 million. As reported, earlier Palmary Enterprises
Limited extended its unconditional cash offer for CSM from A$4.70 to
A$5, and its rival - Pallinghurst company - announced that the company
would not up its offer but would accept Palmary's offer. CSM said that
Palmary extended the offer period from December 7 to December 20, and
the company has the right to prolong it further.
12.12.2007 Source: Interfax
AMC has no information on Evraz purchase of mining and metallurgical
assets from Privat Group
The Antimonopoly Committee of Ukraine (AMC) has no information on the
purchase of a number of Ukrainian mining and metallurgical assets, which
belong to Privat Group, by Evraz Group, AMC Head Oleksiy Kostusev has
said. "We didn't receive relevant requests, and we did not give
any permissions," he told the press in Kyiv on Wednesday. As reported,
Evraz Group is buying a range of mining and metals assets in Ukraine.
Evraz Group is to pay over USD 3 billion in cash and shares for the
purchase of a 99.25% stake in Sukha Balka GOK, a 95.57% stake in Dnipropetrovsk
Petrovsky Metallurgical Plant, a 93.74% stake in Bahliykoks coking plant,
a 98.65% stake in Dniprokoks coking plant and a 93.83% stake in Dniprodzerzhynsk
coking and chemical plant.
12.12.2007 Source: Interfax
Russia's Evraz buys Ukraine steel, iron plants
Evraz Group, Russia's largest steel maker by domestic volume, on Tuesday
agreed to acquire Ukraine's Dnipropetrovsk Iron and Steel Works plus
a separate iron ore complex and three coking plants. The assets are
owned by Privat group, co-owned by Ukrainian businessmen Ihor Kolomoisky
and Hennady Boholyubov. "The acquisition will allow us to increase
iron ore self-sufficiency and ensure further upstream integration,"
Evraz Chairman and Chief Executive Alexander Frolov said. Evraz, part-owned
by Russian billionaire Roman Abramovich, will acquire 95.57 percent
of the Dnipropetrovsk steel mill, which has capacity to produce 1.8
million tonnes a year of pig iron and 1.23 million tonnes a year of
crude steel. The company said it would acquire a 99.25 percent stake
in the Sukhaya Balka iron ore mining and processing complex, which has
annual capacity to produce 3.75 million tonnes of iron ore. Evraz will
also acquire 93.74 percent of the Bagleykoks coking plant, 98.65 percent
of Dniprkoks and 93.83 percent of the outstanding shares in Dniprodzerzhinsk
Coke Chemical Plant. Evraz said it expected the deal to be closed in
the first quarter of 2008 after an independent valuation of the assets
is completed.
11.12.2007 Source: Reuters
Metinvest Holding to spend USD 7.5 billion on Azovstal mill through
2017
Metinvest-Holding Ltd., a managing company belonging to the Metinvest
group, is to spend USD 7.5 billion on the renovation and modernization
of Azovstal steel mill and Yenakiyeve steel plant by 2017. The plan
for the group's strategic development until 2017 was passed by the supervisory
council of Metinvest-Holding Ltd. in October, said Ihor Korytko, the
director of the company's steel and rolled stock division, at a conference
entitled the Day of Metinvest-Ukraine Company in Donetsk on December
7. He said Azovstal would renovate all of its blast furnaces, renovate
steel smelting facilities, and stop using open-hearth furnaces, with
the expansion of converter production. Moreover, Azovstal will no longer
use the old ingot-blooming technology, which requires the modernization
of existing continuous casting machines and the construction of new
ones. At Yenakiyeve steel plant they will build modern light- and heavy-section
mills. Korytko expressed satisfaction with the steelmakers' performance
in 2007, saying that the year was successful.
11.12.2007 Source: Ukrainian Journal
Arcelor Mittal Kryvyi Rih launches coke imports from Egypt
Arcelor Mittal Kryvyi Rih ore mining and enrichment plant has launched
imports of coke from Egypt. In November, the plant imported 5,800 tons
of coke from Egypt. Ukrainian metallurgical enterprises imported 113,500
tons of coke from Poland (68,900 tons), Russia (26,800 tons), Kazakhstan
(12,300 tons) and Egypt (5,800 tons) in November. As earlier reported,
in September, Arcelor Mittal Kryvyi Rih lunched coke imports from France.
It imported 19,250 tons of coke and terminated the imports in October.
11.12.2007 Source: Ukrainian News
Rinat Akhmetov wants to build the metal works in Kiev
In 2008, the Company Metinvest-SCM is going to open the workshop in
Kiev to process rolled metal, on the base of which the metal works will
be made later. That has been announced today in Kiev at the presentation
of the renewed service of steel and rolled metal sells of the Company
'Metinvest Holding'. Also it is planned to open two metal centers in
Nikolayev and Krivoy Rog. 5 more service metal centers of the company
will be opened in various regions of Ukraine in 2008, in particular,
in Lvov, Zaporozhye, Kramatorsk and Luhansk. As of today, the company
has 9 metal centers in various regions of Ukraine.
11.12.2007 Source: Ostrov
Metinvest to approve the program of reconstruction of Makeyevka
Steel Works in QII 2008
LLC Metinvest Holding, which consolidates the mining and metals assets
of JSC "System Capital Management" (SCM, Donetsk), is going
to complete the development and approve the program of reconstruction
of CJSC "Makeyevka Steel Works" (MSW). To the words of Igor
Korytko, the Director of Iron Ore and Rolled Products Division of Metinvest
Holding, the Group has made the decision on fundamental reconstruction
of the plant. "We have serious plans as for MSW. We've made the
decision on the plant's reconstruction. In fact we are going to build
a new plant - starting from sintering facility to production of steel
and continuous casting billets. This seems to be the largest investment
and our biggest project as we are planning to construct everything from
scratch: a sintering facility, blast furnace and steel making production",
noted Korytko. However, he did not specify the volume of investments
for upgrading the facility. Earlier it was reported that the expected
volume of investments into modernization and development program of
MSW exceeds USD 3 billion.
10.12.2007 Source: Interfax
Kriukivsky Railway Car Plant to invest UAH 100 million in upgrade
Kriukivsky Railway Car Plant is to invest around UAH 100 million in
2008 in the upgrade of its production facilities, the head of the plant's
supervisory council and president, Volodymyr Prikhodko, has said. "We
will invest around UAH 100 million in the company's development for
the third year in a row. We will invest these funds in the development
of new technologies. We'll create four or five new products linked to
passenger and cargo car building, subways and escalators," he said.
10.12.2007 Source: Ukrainian Journal
Palmary increases share in Australia's CSM to 37.7%
Palmary Enterprises Limited, which belongs to the co-owner of Ukraine's
PrivatBank Hennadiy Boholyubov, has increased its stake of voting shares
in Australia's Consolidated Minerals (CSM) from 33.86% to 37.7%. The
company said on Wednesday that Palmary bought shares from shareholders
who accepted its offer to buy CSM, and on the market. The number of
shares grew from 78.416 million to 87.319 million.
10.12.2007 Source: Interfax
Palmary increases share in Australia's CSM to 33.86%
Palmary Enterprises Limited has increased its share of voting shares
in Australia's Consolidated Minerals (CSM) from 29.6% to 33.86%, the
Bloomberg agency has reported. The company said on Wednesday that Palmary
bought shares from shareholders who accepted its offer to buy CSM, and
on the market. The number of shares belonging to Boholyubov's company
grew from 68.638 million to 78.416 million.
08.12.2007 Source. Bloomberg
Palmary increases share in Australia's CSM to 29.6%
Palmary Enterprises Limited, which belongs to the co-owner of Ukraine's
PrivatBank Hennadiy Boholyubov, has increased its share of voting shares
in Australia's Consolidated Minerals (CSM) from 19.36% to 29.6%, the
Bloomberg agency has reported. The company said on Wednesday that Palmary
bought shares from shareholders who accepted its offer to buy CSM. As
reported, earlier Palmary Enterprises Limited extended its unconditional
cash offer for CSM from A$4.70 to A$5, and its rival - Pallinghurst
company - announced that the company will not up its offer but would
accept Palmary's offer.
07.12.2007 Source: Bloomberg
Arcelor Mittal Kryvyi Rih repairs converter No. 6
07.12.2007 Source: Ukrainian News Agency
Berdychiv's Progress Engineering Plant to supply to Russia's Magnitogorsk
Iron & Steel Works (MMK) 2 filtration towers before February 2008
06.12.2007 Source: Ukrainian News Agency
Palmary increases share in Australia's CSM to 19.36%
Palmary Enterprises Limited, which belongs to the co-owner of Ukraine's
PrivatBank Hennadiy Boholyubov, has increased its share of voting shares
in Australia's Consolidated Minerals (CSM) from 15.29% to 19.36%, according
to a company report. The company said that Palmary bought shares from
shareholders who accepted its offer to buy CSM. The number of shares
belonged to Boholyubov's company grew from 35.345 million to 44.827
million. As reported, earlier Palmary Enterprises Limited extended its
unconditional cash offer for CSM from A$4.70 to A$5, and its rival -
Pallinghurst company - announced that the company will not up its offer
but would accept Palmary's offer.
05.12.2007 Source: Interfax
Alchevsk Iron & Steel Works ups roll output 7.7% in 11 months
Alchevsk Iron & Steel Works, a member of the Industrial Union of
Donbas (IUD) group, increased finished roll output tentatively 7.7%
year-on-year in January-November to 3.219 million tonnes, including
315,000 tonnes in November. The mill produced 3.582 million tonnes of
crude steel, up 5.4% year-on-year, in the 11 months. Pig iron production
rose 9.1% to 2.961 million tonnes but sinter output fell 3.4% to 4.494
million tonnes. Finished roll production at Alchevsk grew 13.2% to 3.261
million tonnes in 2006.
05.12.2007 Source: Interfax
Khartsyzk Pipe Plant launches ultrasonic inspection system
Khartsyzk Tube Works launches ultrasonic inspection system made by Germany's
Karl Deutsch in pre-delivery section of its electric pipe welding workshop
No. 2
05.12.2007 Source: Ukrainian News Agency
Khartsyzk Pipe Plant reduces output 7.8% in 11 months
The Metinvest holding's Khartsyzsk Pipe Mill reduced production of large-diameter
pipes by 7.8% year-on-year in January-November 2007 to 492,000 tonnes,
including 25,300 tonnes in November, down 16.8%, the company said in
a press release. The mill produced 444,529 tonnes of pipe with anticorrosive,
down 12.7%, in the 11 months, including 20,595 tonnes in November. Large-diameter
pipe production at Khartsyzsk rose 9.2% in 2006 to 595,700 tonnes, including
growth of 38.5% to 516,000 tonnes with anti-corrosive.
05.12.2007 Source: Interfax
Advanced equipment has been commissioned at Azovstal Ironmaking
plant
For the first time in Ukraine, infrared camera has been installed at
Azovstal BF No 6. It enables to read out relative temperature fields,
determine material level and control distribution of gas flow in BF.
Due to usage of state-of-the-art equipment, time required for data collection
and processing about internal processes in the furnace and on-line decision-making
of changing in furnace charging is considerably reduced. "All-out
control of raw materials and power resources consumption at all production
levels is the keystone of our business success. Implementation of advanced
technologies and advanced equipment enables to bring up problem of optimization
of costs connected with raw material to a new level, and this is another
resource for salary growth dynamics of our employees" - said General
Director of PJSC Azovstal Iron & Steel Works Dmitry Livshits. Project
costs made up more than UAH 780 thousand. Similar equipment is planned
to be installed at all blast furnaces.
5.12.2007 Source: press service of Azovstal
Leman Commodities Changes its Name to Metinvest International
Leman Commodities, a major international trader of steel and other
metals, unveiled its new name to the press in Geneva on 4th December
2007. Leman Commodities is a member of the Metinvest Group, which itself
belongs to System Capital Management, a holding company which is one
of the Ukrainian economy's driving forces, with some 160,000 employees.
Leman Commodities handles 9% of the world market for tubes and pipes,
and respectively 8% for merchant slabs and merchant square billets,
and 5% for heavy plates. Its product range covers steel sheet coils,
rails and concrete reinforcing bars, as well as tubes for oil and gas
pipelines.
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04.12.2007 Source: PRNewswire
Poltava Mining to invest USD 300 million in crushing concentration
plant
Ukraine's top iron ore pellet producer, Poltava Mining, plans to invest
USD 300 million in the construction of a crushing and concentration
plant as part of the development of the Yeristov deposit, CEO Viktor
Lotous said. "We plan to launch it in five years. The construction
of the plant is estimated at USD 300 million, for which we will raise
bank loans," he said. The company also plans to develop the Lavrikov
deposit, he said. "The tender for suppliers of machinery took place
last week. The winners of the tender are Hitachi, which will supply
three excavators; Caterpillar, which will supply eight machines; and
Belaz, which will supply four trucks," Lotous said. In addition,
Poltava Mining plans to invest about UAH 600 million in modernization
in 2008, which will be UAH 200 million more than this year, he said.
The money will be spent on updating the pellet production shop and mine
transport facilities. Lotous said Poltava Mining plans to increase iron
ore production to 32 million tonnes as of 2012.
04.12.2007 Source: Interrfax
Poltava Mining boosts iron ore pellet output 7.1% in 11 months
Poltava GOK (PGOK), Ukraine's biggest iron ore pellet producer, raised
commercial pellet production tentatively 7.1% year-on-year to 8.319
million tonnes. Iron ore concentrate production grew 11.3% to 9.756
million tonnes. PGOK produced 740,000 tonnes of pellets and 903,000
tonnes of concentrate in November.
PGOK exports most of its pellets. The company increased shipments to
China in 2006. The company ships around 10% of its pellets to China.
PGOK's main customers are located in Austria, Poland, Romania, the Czech
Republic, the former Yugoslavia, Bulgaria and Italy. Domestic market
sales started to increase in the second half of 2006. Switzerland's
Ferrexpo AG owns 85.8% of PGOK.
04.12.2007 Source: Interfax
IUD purchases 83% shares of Polish shipyard "Stoczina Gdanska"
The daughter company of the Ukrainian "Industrial Union of Donbass"
"ISD Polska" has purchased 83% shares of the Polish shipyard
"Stoczina Polska". The company transferred 100 million PLZ
for extra share issues to obtain 83% shares of the "Stoczina Gdanska".
The "Industrial Union of Donbass" came up with an idea to
purchase shares in October. The corporation also runs the Alchevsk Iron
and Steel Works, Alchevsk Coke Chemical Plant, Dniprovskyi Metallurgic
Plant, Hungarian Dunafer and Polish Huta Stali Czestochowa. The IUD's
production volumes exceed 9.2 million tons per annum.
04.12.2007 Source: Ukrinform
Arcelor Mittal Kryviy Rih increases roll output 4% in 11 months
Arcelor Mittal Kryviy Rih increased roll production tentatively 3.9%
year-on-year to 6.491 million tonnes in January-November 2007. In the
11 months, the company's steel production grew 7.8% to 7.437 million
tonnes, pig iron - 7.1% to 6.623 million tonnes and sinter - 6.2% to
10.947 million tonnes. In November, the company produced 566,000 tonnes
of roll, 644,000 tonnes of steel, 591,000 tonnes of pig iron and 928,000
tonnes of sinter. In the 11 months, the company's coke producing subsidiary,
increased production 12.8% to 2.766 million tonnes while its ore mining
division's output of iron ore concentrate grew 9.2% to 7.723 million
tonnes, with crude iron ore production up 3.6% to 1.806 million tonnes.
Arcelor Mittal Kryviy Rih is Ukraine's largest metal producer and partner
of the Metal-Forum of Ukraine.
04.12.2007 Source: Interfax
Arcelor Mittal Kryvy Rih boosts pretax profit 42% in January-October
Arcelor Mittal Kryvy Rih increased pretax profit 41.9% year-on-year
to UAH 4.598 billion in the first ten months of 2007 on sales up 33.6%
to UAH 15.674 billion. The main markets for the company's steel products
are the Middle East, Europe, Africa, Algeria, the European Union and
Eastern Europe. Arcelor Mittal Kryviy Rih is Ukraine's largest metal
producer and partner of the Metal-Forum of Ukraine.
03.12.2007 Source: Interfax
Smart Holding transfers 82.5% stake in Inhuletsk GOK to Metinvest
Kyiv-based CJSC Smart-holding, in the light of expanding cooperation
with System Capital Management (SCM) in the mining and metallurgical
sector, has transferred an 82.5% stake in OJSC Inhulets Mining (Inhulets
GOK) in Dnipropetrovsk region to Metinvest, which manages the mining
and metallurgical assets of SCM, according to a Metinvest report. "We're
gradually realizing a plan to merge the mining and metallurgical assets
of SCM and three companies of Smart-holding. We hope that the plan will
be realized in full by the end of the first quarter of 2008. After the
merger, Smart-holding will become the second owner in Metinvest,"
reads the report, citing Metinvest Holding Ltd. Director General Ihor
Syry. He said that Inhulets GOK is one of the most promising companies
in the sector, and Metinvest is being developing its development plan
as part of the vertical structure of Metinvest. Syry said that the key
investment would be allocated to increase production and further improve
product quality. In 2008 production growth at Inhulets GOK is expected
to be 5%. The tentative investment in 2008 will be around USD 200 million.
03.12.2007 Source: Interfax
Inhulets Mining ups iron ore concentrate output 5.7% in 11 months
Inhulets Mining, Ukraine's biggest producer of iron ore concentrate,
increased output of commercial concentrate by 5.7% year-on-year to 12.596
million tonnes in the first 11 months of 2007, according to tentative
figures. Production in November came to 1.11 million tonnes. Inhulets,
which has an estimated 77% share of the Ukrainian concentrate market,
sold 11.806 million tonnes of concentrate to domestic steelmakers in
the 11 months, less than a planned 12.314 million tonnes.
03.12.2007 Source: Interfax
Azovstal ups steel roll output 5.7% in 11 months
Azovstal, one of Ukraine's leading steelmakers, increased the output
of rolled products by 5.7% year-on-year to 5.068 million tonnes in the
first 11 months of 2007, including 429,000 tonnes in November. Production
in the 11 months increased by 7.7% to 4.942 million tonnes of pig iron
and 5.4% to 5.746 million tonnes of crude steel. Finished roll production
grew 0.6% in 2006 to 5.272 million tonnes. System Capital Management
controls Azovstal via the Metinvest holding.
03.12.2007 Source: Interfax
