OREANDA-NEWS. Press-conference of the General Director of Zaporizhstal Integrated Iron and Steel Works Rostislav Shurma, who has now been in office for a year, was held. He summed up the results of work for this year and announced main performance indicators of Zaporizhstal Integrated Iron and Steel Works from the date of Metinvest Group entering the Works.

Production:

In the period from January to July, 2013, Zaporizhstal Integrated Iron and Steel Works increased steel production by 1.3% and roll stock by 3.3%, as compared with the same period in 2012. 1852 thousand tons of iron, 2208 thousand tons of steel and 1863 thousand tons of roll stock were produced over a period of the first seven months of 2013.

 In July of 2013 a considerable increase of all operating performance results was noticed: overall production of iron by 7.6%, steel — by 7.7%, roll stock — 9.5%. 341.6 thousand tons of steel and 282.9 thousand tons of roll stock were produced in July of 2013. For the first time in 5 years, the iron smelting during the month reached the record level of 286.8 thousand tons, while operating only three Blast Furnaces.

Financial indices:

Gross profit of the Works over a period of 7 months of 2013 reached around 768.1 mln UAH, which is 2.6 times larger than the index of the same period in 2012.

According to the international financial reporting standards, net profit of Zaporizhstal Integrated Iron and Steel Works over a period of 7 months of 2013 reached around 143 mln UAH against to loss of 626.1 mln UAH over a period of 7 months of 2012.

Growth of financial and economic indices made it possible to increase transfer of taxes and dues to the budgets of all levels. According to the annual results of 2012, “Zaporizhstal” Integrated Iron and Steel Works transferred 1.08 billion UAH to Ukrainian budgets of all levels, which exceeds the index of 2011 by 117 mln UAH (or 12%). Over a period of 7 months of 2013 the Works transferred 455.2 mln UAH, which is 3% higher than the index of the same period of time in the previous year (443.1 mln UAH in 2012).

Over a period of 7 months of 2013 a considerable decrease in production cost price was achieved: it made up 7747 mln UAH as compared with the same period in 2012, when the cost price made up 8966 mln UAH.

Sales volume:

Over a period of 7 months of 2013 the Works increased sales volume by 2.6% as compared with the same period in 2012. This includes increase of sales to Ukrainian market by 2%, and to the export markets by 3.4%. In spite of decline in pipe and tube production of Ukraine, the Works not only retained sales volume of the hot-rolled coils to pipe producers, but even increased them, which allowed to raise total coil supply to the domestic market by 38%.

Modernisation:

An active production modernisation has begun at the Works in August of 2012. It suggests a complex of technology solutions aimed at considerable decrease of environmental impact. A project on commissioning of the basic coal storage of pulverized coal injection complex in blast-furnace process has already been completed (total volume of investments amount to approximately 1 billion UAH) and a sinter machine No.1 with a high-tech gas-cleaning equipment has been put into operation (project investments about 240 mln UAH).

In 2012 the Works invested around 450 mln UAH into modernisation and revamping of production facilities. This being said, 65% of this amount was invested during the period from August to December of 2012 (in 2011 investments reached around 300 mln UAH).

An active construction of a hydrochloric acid pickling line has been started in January of 2013. Investments into this project amount to 730 mln UAH. The efficiency of this measure is the decrease of sulfuric acid vapor emissions by 83% and complete elimination of disposal of service water of the Work’s cold rolling shop into the river Dnieper. Completion of this project is scheduled for April of 2014.

Implementation of the programme of equipping existing sinter machines with gas-cleaning systems is now in progress. Construction of a gas-cleaning plant behind the sinter machine No. 2 is scheduled for 2014, investments into this project amount to approximately 75 mln UAH.

Increase of efficiency:

Raising energy efficiency is directly related to an ongoing programme of Metinvest Group, which is aimed to implement energy saving projects and introduce complete control of energy and raw material expenditure on all production levels. Thus, over a period of 7 months of 2013 “Zaporizhstal” Integrated Iron and Steel Works reduced energy output ratio of the produced metallurgical products by 6.4%. The energy output ratio of products for 7 months of 2013 is 21.8 gigajoules per tonne against to 23.3 gigajoules per tonne for the same period in 2012.

An automated energy resources commercial accounting system is being implemented at the Works, the expected savings on the costs of energy resources due to implementation of this project amount to more than 5 mln UAH per year.

Social responsibility:

The capital repairs programme of sanitary and personal service rooms in the main production shops has been being implemented at the Works since August, 2012. About 920 thousand UAH were invested into this programme in 2012, the investments of the programme’s second stage amount to 2.2 mln UAH. The Works invested about 731 thousand UAH into providing optimum water consumption and temperature conditions.

Over a period of 7 months of 2013 Zaporizhstal Integrated Iron and Steel Works accepted for employment 225 graduates of higher educational establishments and academic institutions.

According to the results of the first six months, all 120 clauses, stipulated in the Collective Agreement, have been observed. This agreement embodies the principle of partnership between the employer and trade-union committee and is the warranty of social security of metallurgists. The total amount of expenses for the first six months is 112.7 mln UAH. We would like to remind that privileges and warranties on health promotion of workers of “Zaporizhstal” Integrated Iron and Steel Works, support of veterans, culture and sport development and payment of all kinds of material aid are retained in the Collective Agreement for 2013.