Ukrainian steel crisis deepens amid strikes, rising costs, and EU rules – Metinvest
Ukraine's steel industry is in the critical state, seeing production stoppages caused by Russian attacks, cost optimisation, dependence on imports and new EU trade restrictions, Oleksandr Vodoviz, Head of the CEO's Office at Metinvest Group, told the Polish business portal Strefa Biznesu.
The Ukrainian steel industry is facing a critical situation, with production stoppages due to Russian attacks, cost optimization efforts, dependence on imports, and new EU trade restrictions, according to Oleksandr Vodoviz, Head of the CEO's Office at Metinvest Group. The Zaporizhstal and Kamet Steel plants, both located in Zaporizhia, have been shut down, leading to the destruction of furnaces and steel structures, and loss of life.
Metinvest employs around 50,000 people, including those serving in the Ukrainian defense forces. To survive, the company is reducing costs, optimizing business processes, and cutting headcount, primarily in areas with significantly lower workloads. Zaporizhstal was a major supplier to many countries in the EU and would no longer be able to provide products to customers in the EU due to new quotas.
The EU has allocated a quota of 600,000 tonnes of steel to Ukraine, which Törkiye has already exhausted. While the EU sees Ukraine as part of the Union, the distribution of quotas is considered unfair. The EU is also imposing the Carbon Border Adjustment Mechanism, which Ukrainian plants have not received support for, while their Ukrainian counterparts face daily missile and drone attacks.
Vodoviz believes that preserving Ukraine's steel industry is in the EU's interest and raises concerns about potential reductions in the quota during the upcoming decision in December.
Written by urgent.news from Interfax-Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
