Ukraine's largest vertically-integrated mining and steel group Metinvest has announced that it is planning to boost the efficiency of its steelmaking subsidiary Yenakievo Iron and Steel Works (EMZ) through improving the administration and management at productions sites.
This is expected to result in bigger margins for EMZ due to increased billet deliveries to the rolling mills of another Metinvest subsidiary Makiivka Iron and Steel Works (Makiivka Steel), aided by the higher finished steel output of the latter. The simultaneous optimization of EMZ's rolling capacity and throughput production management processes for both sites will allow considerable reductions in overhead and production costs. The legal status of the enterprises will not change.
Since the integration of Makiivka Steel into Metinvest group (October 2010), Metinvest has been looking for the most efficient model for the integration of the plant's rolling capacities into its existing supply chain.
"...The favorable geographical location allows us to almost fully cover the raw material needs of Makiivka Steel by supplying billets from EMZ. As a result of the integration, almost 100 percent of the continuous cast billets from EMZ will be fed into rolling mills 390 and 150 at Makiivka Steel. This is over half of EMZ's commercial product volume," director of Metinvest's steel and rolled products division, Alexander Pogozhev, said. "The in-house rolling facilities of EMZ will be optimized. Steel casting and rolling capacities will become more manageable. The joint work of the specialists from both production sites will allow faster development and the commissioning of production of new types of rolled finished products made of carbon, high carbon and low alloyed grades of steel," he added.