29 January 2015
Metinvest Group announces that raw materials supplies from Krasnodon Coal to the Group's enterprises are being blocked. On January 13, 2015, 48 railcars from Krasnodon Coal bound for Azovstal and Avdiivka Coke, were held up at the Krasnyi Liman station for inspection by the State Fiscal Service of Ukraine. Five days later, the railcars were arrested by the Security Service of Ukraine.
During judicial proceedings on January 22, a resolution was adopted to release the railcars. However, the station is still holding the railcars, citing the prohibition by the Security Service of Ukraine.
The situation is becoming worse because new railcars arriving at Krasnyi Liman are also getting held up. As of January 29, the station has blocked 144 railcars with coal and scrap and another 166 railcars are in transit to the station. There are another 336 railcars with coal products from Krasnodon Coal on this railway section bound for Metinvest's enterprises.
Interruptions in supplies from Krasnodon Coal can lead to reduced production at Metinvest's metallurgical enterprises and could cause Avdiivka Coke's batteries to suspend production.
Metinvest Group believes there is no basis for holding the railcars loaded with coal and requests law enforcement bodies facilitate a rapid resumption in raw material supplies.
- For editors:
PJSC "AZOVSTAL IRON & STEEL WORKS" is a modern high-technology enterprise manufacturing wide range of steel products: slabs, bars, shapes, railway rails, rail fasteners, square billets, plates and products of metallurgical slag.
Production capacities of the enterprise allow to produce annually over 5.5 million tons of iron, over 6.2 million tons of steel (aim is to achieve 7 million tons of steel per year) and over 4.4 million tons of rolled products. Design capacities for rail fasteners production is 285 thousand tons per year, grinding balls 170 thousand tons per year.
PJSC "ILYICH IRON AND STEEL WORKS OF MARIUPOL" is one of the largest integrated enterprises in Ukraine. The enterprise produces pipes and flat rolled products of carbon, low-alloy and alloy steels for different applications: hot-rolled plates and sheets intended for manufacturing of pipes for main pipelines, ships, pressure vessels, bridge structures, other steel structures for critical application; hot-rolled plates, sheets and strips including pickled; cold-rolled, including galvanized bands, sheets and strips, including for cold stamping, flooring and others.
METINVEST is a vertically integrated mining and metallurgical group of companies that manages assets in each segment of production chain, from extraction of iron ore raw materials and coal, as well as coke production up to manufacture of steel semi-finished and finished products, pipes and coils and also manufacture of other high-value-added products. The Group incorporates mining and metallurgical enterprises located in Ukraine, Europe and USA and has sales network covering all global key markets. Metinvest Group incorporates Metallurgical and Mining Divisions. According to the strategic vision of Group it is aimed to become the leading European vertically integrated steel manufacturer with sustained growth and profitability, despite the cyclical nature of markets, and provide investment yield above the industry standards. For the first three months of 2014 ended March 31, 2014, the Group received a US $ 2.9 billion in revenue, EBITDA profitability was 30%.
The key shareholders of METINVEST B.V. (Holding Company of Metinvest Group) are SCM Group (71.24%) and SMART Group (23.76%) that take part in the Group administration on a partnership basis.
"METINVEST HOLDING" LLC is the managing company of Metinvest Group.
Additional information is available at site: www.metinvestholding.com