Metinvest plans to unite Azovstal and Mariupol Ilyich Iron and Steel Works, said a source from the city’s business circles.
But the group itself denies this.
“It’s unreal legally. But our metal division is working in Mariupol and controlling both works”, said the group CEO Yuri Ryzhenkov. Still a deeper integration of manufacturing processes management is possible.
This has to do with better distribution of resources, Azovstal coke and Ilyich sinter in particular.
Both works can produce 10 million tons of steel per year, with 6 million at Azovstal and 4 million at Ilyich. But due to raw materials and sales difficulties the companies work at 65-70% capacity.
An idea of uniting two Mariupol metal works was first devised back in 1996 by Ilyich ex-director Vladimir Boiko. When different owners privatized the companies, this idea was dropped. But after Ilyich merged with Metinvest, the union of the two works was again brought into the light. (Ukrainian metal)