”Metinvest” Invests $35 Bln in Transition to Green Steel Production

by Meifan Honcharuk
Sunday, June 26, 2023
”Metinvest” Invests $35 Bln in Transition to Green Steel Production

Transformation of Ukrainian heavy industry into an environmentally friendly construct with sales markets in Europe

On June 22, representatives of the government of Ukraine, Metinvest, representatives of Primetals, and Fortescue - FMG, Rothschild & Co signed a memorandum of cooperation. The purpose of the memorandum is multilateral cooperation on restoring Ukraine's metal industry along an environmentally friendly path. To this end, Metinvest has joined the state green transformation program, which will finance the following projects until 2035:

  • Green transit from a conventional industrial line Metinvest for the use of DR-class pellets and a further increase in the production of this type;
  • Decarbonisation of Metinvest's production units Zaporizhstal and Kametstal. Transfer of workshops of these plants to a greener electric steelmaking method for obtaining products from DRI-class pellets;
  • In the medium term, investment in these projects will be ≈ $35 billion. Annually, this will bring 15 million tons of decarbonised steel.

"We are on the threshold of great opportunities. Creating a full cycle of "green" steel production in Ukraine is quite possible. And this is exactly what will make both Ukraine and the EU countries stronger. We said earlier that during the post-war reconstruction, Ukraine should be considered as part of the European Union, as part of its production chain. That is why Ukraine's participation in the green steel development initiative has great potential. The chain of creation of such products implies the availability of iron ore, energy and sales markets," Metinvest CEO Yuri Ryzhenkov.

Ryzhenkov added that green transformation is the long-term strategy of Metinvest Group. The conglomerate is ready for this transition financially, technologically and ideologically. Most of the work is planned not for the period after the victory of Ukraine. We remind you that Metinvest Group include Azovstal.

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