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Metinvest to Improve the Efficiency of its Steelmaking Facilities

04/06/2011 - Metinvest is planning to improve the efficiency of its Yenakiieve Iron and Steel Works by improving the administration and management of its production sites.

Metinvest is planning to improve the efficiency of its Yenakiieve Iron and Steel Works by improving the administration and management of its production sites. The work is being carried out within the frame of the company’s continuous improvement, reconstruction and production modernization program.
 
The upgrade is expected to result in margin improvements for Yenakiieve Steel due to the increased share of finished products from the Makiivka Steel rolling mills. Simultaneous optimization of Yenakiieve Steel rolling capacity and throughput production management processes for both sites will enable the company to reduce overhead and production costs considerably. The legal status of the enterprises will not change.
 
Since integration of the Makiivka Iron and Steel Works into Metinvest Group in October 2010, the company has set up a taskforce comprising the best steelmakers and managers. The key objective of the task force was to find the most efficient model for integrating the Makiivka Steel rolling capacities into the existing supply chain. The resulting model will help to improve Yenakiieve Steel’s efficiency through the reorganization of management and expansion of the company’s product range with the addition of complementary products from Makiivka.
 
“A number of factors favor this decision,” commented Alexander Pogozhev, Director of Metinvest’s Steel and Rolled Products Division. “Firstly, favorable geographical location allows to almost fully cover raw materials need of Makiivka Steel with supplying billets from Yenakiieve. As a result of the integration, almost 100% of the continuous cast billets from EMZ will be fed into rolling mills 390 and 150 in Makeyevka. This is over half of Yenakiieve merchant products volume.
 
“In-house rolling facilities of Yenakiieve Steel will be optimized,” continued Pogozhev. “Steel casting and rolling capacities become better manageable. Joint work of the specialists from both production sites will allow faster development and putting into production of new types of finished rolled products made of carbon, high carbon and low alloyed grades of steel.”
 
Formalization of the reorganization through production capacity arrangements does not envisage changes in legal status of the enterprises.
 
Metinvest is a vertically integrated group of metals and mining companies.