"Almost all current strategic investment projects have been suspended, with the exception of the construction of a new block of mine No. 11 at Pokrovsk-Vuhillia to maintain production volumes," Metinvest stated in a presentation at the 14th annual corporate conference J.P. Morgan Global Emerging Markets.
It clarifies that although decarbonization initiatives were delayed due to the war, the strategy for iron ore assets has not changed, and the group continues to focus on high-quality products.
"Strategic priorities will need to be comprehensively reviewed after the end of the active phase and assess the impact of the war. The group is looking for opportunities to improve synergies between Ukrainian and foreign assets as they are vertically integrated," the company's future plans after the end of the war are explained.
According to the presentation, since the outbreak of hostilities, Metinvest has transferred part of its assets to a hot conservation mode to ensure the safety of employees, protect equipment and prevent any industrial accidents that military operations could potentially lead to. At the same time, critical repairs continue to ensure an adequate level of productivity, as well as in preparation for increasing production after the end of the war.
"The group has some power generation capacity at some of its assets and is considering expanding it to prevent damage from emergencies due to power outages," the presentation said.
Regarding the period of post-war reconstruction of Ukraine, the company points to the political and economic rapprochement of the country with the EU, as well as the reduction of competition from Russian manufacturers. If the reconstruction program is implemented on a large scale, it could increase domestic demand for steel products, the group believes.
