Against the background of sanctions against Russia. How did Azovstal's destruction influence Metinvest plans to build a new plant in the EU

The condition of the 3600 Metallurgical Plant Azovstal after bombing by the Russian army (photo: @kozatsky_d Via Twitter) Metinvest thinks of the construction of a new plant in the EU. There was a deficiency of flat rental after the destruction of Azovstal and MMK named after Illych, as well as sanctions against Russian plants.

What will it be about the enterprise? After Mariupol's occupation by Russian troops, Metinvest Rinat Akhmetov and Vadim Novinsky changed plans for the construction of a new plant in the European Union. “Initially, we had the idea of ​​rental production. But it was designed for the presence of slabs of the azovstal. In the near future, we will not see these slabs.

Therefore, we began to look at a different direction based on Dri-raw materials and electrical stalemile mode of production, ”Business Yuri Ryzhenkov, CEO of Metinvest Group said in an interview with NV. Video Day Top Manager says that a new plant in the EU could process iron ore from the Ukrainian enterprises of the group, to become an opportunity for the sale of Ukrainian products for export.

Regarding the need for another metallurgical plant in the EU, Ryzhenkov believes that steel is a strategic product, and every region of the world tries to be self -reliable in steel. "There are no surpluses in the EU, it is a net importer," added Metinvest. He explained that at the moment the Azovstal and MMK named after the EU market. Illich, so Europe has very big problems with flat rolling. It cannot be replaced quickly. “It is now talking about a new package of sanctions.

The path of Russian semi -finished products to Europe is likely to be closed. This will create an even greater deficit, ”Ryzhenkov is sure. All this gives the opportunity to create new steelmaking capacities in the EU with new "green" technologies.

He believes that the European Commission will make a decision to close the market for Russian semi -finished products (primarily the slabs of NLMK - NV business), because it is a direct financing of the aggressor economy and partially anticompetitive actions against those who cannot buy Russian raw materials. “The Ukrainian government should speak here: the Ministry of Economy, the Ministry of Foreign Affairs. And I know they say constantly. I hope they will be heard, ”Yuri Ryzhenkov says.

Despite the loss of plants in Mariupol, Metinvest was able to find raw materials for its European plants in the United Kingdom, Italy and Bulgaria. In addition, the company is looking for opportunities for the development of cooperation between its own Ukrainian assets. For example, at the Zaporizhstal (Zaporizhzhia) Metcombin, the production of slabs from the ingots of the Kametstal (Kamianske) plant, where a more modern way of smelting steel. Then these slaves are processed on European assets.