Metinvest is considering the possibility of supplying DRI to Europe

Metinvest believes that the supply of direct reduced iron is a new opportunity for the steel sector in Ukraine, given the development of the green steel market in Europe, says CEO Yuriy Ryzhenkov.

“The fact that Metinvest can produce direct recovery products and can increase their volumes opens up new European markets for us,” he told dsnews.ua as part of the Top 10 Wartime CEO project. “Now we are looking for customers in Sweden, Germany and Austria, where we did not supply iron ore before.”

Metinvest firmly believes in the eventual liberation of Mariupol from Russian occupation and intends to restore its presence there through the construction of carbon-neutral steel mills.

According to the company, with the start of the Russian invasion, Metinvest Group completely transformed its operating business model, rebuilt logistics and stabilized production volumes, which made it possible to service debt obligations. “The Black Sea ports through which the products were exported were blocked by the Russians and the company built new logistics - now most of the transportation to Europe is carried out by rail, as well as through the ports of Romania and Poland,” adds Ryzhenkov.

At the beginning of the invasion, the foreign enterprises of the group depended on the raw materials of the Mariupol plants, mainly Azovstal. According to the CEO, following a review of the operating model, the company's rolling mills in Italy and the UK now operate autonomously using raw materials from local producers, while the subsidiary in Bulgaria receives semi-finished products from the Kametstal steel plant.

“In addition, alternative buyers have been found for the products of [Metinvest's] coal mines in the United States, which previously supplied coal to Ukrainian enterprises. These steps made it possible to significantly increase the capacity utilization of foreign assets,” he comments.

To mitigate power outages, Metinvest imported electricity from the EU in February, allowing its plants to weather a difficult period for the domestic energy sector. “As a backup option, the possibility of installing renewable energy sources is being studied,” says the CEO.

Despite the constant threat of Russian shelling, the Ukrainian enterprises of the group continue to work with different loads, Ryzhenkov concludes.