Azovstal continues production during military operations

Doing business in Ukraine is quite complicated due to the endless war. Azovstal, a major steel producer, is located in the city of Mariupol on the coast of the Sea of ​​Azov, with about 500,000 inhabitants. The well-being of these people largely depends on the position of the metallurgical plants, since the machine-building plant has practically stood still since the beginning of tensions in the country.

Azovstal CEO Enver Tskitishvali said that the company is facing serious logistical problems and, despite the continued peaceful situation in the city, the plant is cut off from routes for further supplies. Nevertheless, in such conditions, the plant is looking for new opportunities to continue production. But supplies that are now carried out by sea have limitations, since the sea is shallow, and in winter it is covered with ice.

Existing supplies may support production, but do not provide the company with the required amount of raw materials. The company says steel supplies could be cut by up to six times if supply and shipping problems are not resolved.

Enver Tskitishvali said the company expects a 30 percent drop in total production, while also insisting that the company has not reached the financial crisis as it has solved some of its problems through a high value-added market segment. As a result, the company faced losses of 10-15 percent.