Yenakievo Iron and Steel Works and Krasnodonugol, both subsidiaries of Metinvest Group, have halted operations. Production has been disrupted by the ongoing armed hostilities and a blockade of railway transportation between the controlled and the uncontrolled territory of Ukraine.
Since the beginning of the conflict in the region, Yenakievo Steel has experienced erratic supplies of iron ore. Following a blockade of the Yasinovata-Skotovata railway line, shipments of raw materials and finished goods are not possible for now.
Yenakievo Steel has completed preparations for temporary mothballing. A blow-out of blast furnace Nos. 3 and 5 has been performed and the basic oxygen furnace shop has stopped operating. Production at the Makeevka branch will be halted on February 25.
In addition, Krasnodonugol has halted coal production at all mines due to the blockade of railway transportation.
Yenakievo Steel and Krasnodonugol are registered in the territory controlled by Ukraine and pay all taxes and duties to the state budget as stipulated in the country’s legislation.
Despite the suspended operations at Yenakievo Steel and Krasnodonugol, Metinvest takes its role as a corporate citizen of Ukraine extremely seriously and responsibly for its local communities equally. The group’s plants are the main employers and economic anchors in their communities. Metinvest does not intend to reduce headcount at Yenakievo Steel (including the Makeevka branch) or Krasnodonugol. In addition, employees of the facilities will be transferred to two-thirds remuneration. (SCM/Ukrainian metal)