18 August 2014
Damage from heavy artillery cut the electricity transmission lines to the cities of Yenakiieve and Khartsyzsk. This led to the full shutdown of production at Yenakiieve Steel, Enakievskiy Koksohimprom and Khartsyzsk Pipe. Avdiivka Coke is still cut off from electricity.
Due to ongoing military activity in the area near the cities Yenakiieve, Avdiivka and Khartsyzsk, it is impossible to carry out work to restore the electricity transmission lines. Representatives of Metinvest Group do everything possible to create a “green corridor” for repair teams.
Yenakiieve Steel is one of the world’s leading producers of square billet, Khartsyzsk Pipe is Ukraine’s leading and one of Europe’s leading pipe producers, and Avdiivka Coke is one of Europe’s largest high-tech coking enterprises. The shutdown of these large metallurgical enterprises and the major employers in these cities affects the entire Ukrainian economy and 15,000 employees and their families. In addition to the social and economic consequences, the residents of Southeastern Ukraine are now at risk of manmade disasters.
Avdiivka Coke was fully cut off from electricity supply at the end of last week and production at Yenakiieve Steel was suspended one day before that. On August 16, armed representatives of the Donetsk People’s Republic hijacked the newest shunting diesel locomotive from the territory of Yenakiieve Steel.
METINVEST is an international vertical-integrated mining-and-metallurgical Group of companies, which runs assets in every link of production chain for creation of value from iron-ore and coal mining tol semi-finished and finished metal products manufacture. The structure of the Group comprises mining and metallurgical enterprises in Ukraine, Europe and USA, and sales network covering the key world markets. METINVEST GROUP consists of Metallurgical and Mining Divisions. According to the strategical vision of the Group its aim is to become lead European vertical-integrated steel producer with stable ratio of growth and cost effectiveness in spite of market cyclicity, and to ensure investment return higher than industrial standards. For the first quarter of 2014 ended 31 March 2014, the Group reported revenues of US$2.9 billion and an EBITDA margin of 30%.
The main shareholders of METINVEST B.V. company (Holding company of METINVEST GROUP) are SСM GROUP (71,25%) and SMART GROUP (23,75%), which control Group at partnership relations..