OREANDA-NEWS. In 2013 same as in 2012, SCM Group invested UAH 16bn (excluding M&A) in assets development, including UAH 5.7bn and UAH 10bn to modernise Metinvest and DTEK plants respectively.

"We do realise that our business and investment decisions affect the stability, welfare and development of hundreds of thousands of our employees and several dozens of Ukrainian cities, towns and villages. Therefore, despite a challenging political and economic situation in the country, we are going to continuously make large investments in modernisation and efficiency of our businesses, environmental protection, health and safety, development of employees and social improvement of the regions where we operate", said Oleg Popov, CEO of SCM.

Metinvest's key investment projects in 2013:

As part of a large-scale modernisation programme, Zaporozhstal steel plant launched a new sinter facility No. 1 to ensure a highly efficient gas treatment and reduce air emissions by 10%. Zaporozhstal continued to overhaul blast furnace No. 4 and construct a new hydrochloric acid pickling line with a unit for pickling fluid regeneration

Ilyich Steel Plant completed the overhaul of sinter facilities No. 7 and No. 9, which cost around UAH 25m and UAH 11m, respectively. Thus, the sinter plant shows better performance, consumes less natural gas and has a much lower environmental footprint. Today 12 sinter facilities operate at Ilyich Steel Plant and their worn-out equipment is being replaced stage by stage

The Ilyich Steel Plant commissioned a pulverised coal preparation and injection unit (PCI) ensuring lower natural gas and coke consumption. Also, the plant overhauled converter No. 3, blast furnace No. 4 and a sheet rolling mill

Yenakiyevo Steel Plant installed the capital equipment of the PCI unit and, jointly with Air Liquide, started mounting the VRU-1400 air separation facility. The construction of TVD 1 turbine-driven blower reached the final stage

DTEK's key investment projects in 2013:

DTEK Zaporozhskaya TPP started reconstructing power unit No. 3 to modernise the generator, boiler and turbo units, boiler feed pump, install new electric filters and an advanced automated control system

DTEK Dobrotvorskaya TPP began upgrading power unit No. 8 to increase its capacity from 150 to 160 MW, extend service life of the equipment by 15 years and reduce the emission of solids to 50 mg/m3 to comply with the European standards

In 2013, DTEK Burshtynskaya TPP completed reconstruction of power unit No. 5 and overhauled units No. 3 and No. 4. The power plant started increasing the capacity of ash dump No. 3 and building a new ash discharge pipeline

Botievo wind farm installed 35 wind turbines Vestas V112-3.0 MW as part of the second stage of its construction

Kievenergo fully upgraded the 35/10 kW Pecherskaya substation to fix the power shortage in Kiev's downtown and cover the growing energy consumption. In 2013, DTEK completed the first stage of reconstruction at the 35 kW Yelenovskaya substation to increase its power to 110 kW. This will improve the reliability of power supply to the existing consumers in Kiev's Podolskiy district and help to connect new sites to the electric networks

SCM Group's key investment priorities for 2014:

In 2014, Metinvest Group continues to roll out its environmental projects at Mariupol plants. Azovstal Steel Plant will reconstruct the aspiration units at iron desulphuration shop and casting houses of blast furnace No. 4

Ilyich Steel Plant plans to repair filters at 12 sintering facilities and upgrade environmental protection systems at furnaces No. 2 and No. 5 of the converter shop. Also, the plant will reconstruct the gas purification system of converter No. 1

Yenakiyevo Steel Plant is going to launch an advanced air separation unit and the PCI complex, as well as start building a sinter facility

Zaporozhstal will commission the hydrochloric acid pickling line and complete overhaul of blast furnace No. 4

SevGOK and InGOK will continue to build the cyclic-continuous technology for ore transportation

The second stage of Botievo wind farm with 107.625 MW capacity is going to be launched in April 2014, thus increasing the overall capacity to 200 MW. Botievo is the largest wind farm in Ukraine

SCM Group invested over UAH 6bn in programmes focused on staff development, health and safety, environment and improvement of living standards in its local communities.

SCM Group's key projects 2013:

Metinvest signed an agreement with Termokimik Corporation (Italy) for basic engineering as part of the modernisation of sintering facility at Ilyich Steel Plant. Investment in the programme will total around UAH 1.8bn making it the largest environmental project in the history of independent Ukraine

The equipment at DTEK power units was modernised to cut the dust content in air emissions and meet the requirements of EU Directive 2001/80/ЕС (max. 50 mg/m3). The modernisation was carried out at power units No. 6 at DTEK Kurakhovskaya TPP, No. 13 at DTEK Luganskaya TPP, No. 4 at DTEK Zuyevskaya TPP, No. 5 at DTEK Burshtynskaya TPP, No. 11 at DTEK Pridneprovskaya TPP

Metinvest contracted Siemens VAI (Austria) to conduct engineering works for the project of sinter facility construction at Yenakiyevo Steel Plant. Investment in the project will total around UAH 3.8bn

DTEK's businesses in Lugansk Oblast signed Memorandums of Cooperation (MoCs) for environment protection in 2013-2018 with a total budget of about UAH 800m.

Metinvest and DTEK continued to introduce the strategies in occupational medicine ensuring a much better prevention of occupational diseases and quality of medical assistance provided to the employees

Krasnodonugol (Sukhodolskoye-Vostochnoye colliery) introduced the integrated production safety system and the system for underground tracking of employees and machinery. Also, the company modernised the gas level monitoring tool. Investment in the project totalled UAH 28m

DTEK Zuyevskaya TPP rolled out the LOTO (LockOut/TagOut) pilot project to provide safe conditions for repairs and service works. Investment in the project totalled around UAH 1.2bn

SCM Group businesses continued implementing the Social Partnership Programme (SPP) focused on social and economic development of the cities, towns and villages where they operate. Overall, the Group realised more than 200 SPP projects in 11 regions of Ukraine and invested over UAH 215m.