The Dneprovsky Iron and Steel Combine problems could result in it suspending operation.
The company debt burden is 83 billion UAH.
Such a debt was accumulated due to the Industrial Union of Donbass (ISD) shareholders using various grey schemes, as well as a number of strategic mistakes.
In particular, ISD was not able to construct a single vertical integration link during the time of “large-scale privatization” in Ukraine and was left without its own raw materials. Bu a lot (some $3 billion) was invested in the modernization of Alchevsk Iron and Steel Works, which in 2014 found itself on Russia-controlled separatist-occupied territories. And, finally, the expenses on outer expansion – in 2003 ISD purchased Dunaferr, in 2005 – Huta Częstochowa, and in 2007 – Gdansk shipyard.
On May 31 the Commercial court of the Dniepropetrovsk region initiated a bankruptcy procedure of DMK. (Ukrainian metal)
