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Ilyich Iron and Steel Works

Metinvest forms a new enterprise – Mechanical Repair Works

7 August 2013

In Mariupol on the basis of repair assets of the Chief Mechanic Department of PJSC «Ilyich Iron and Steel Works of Mariupol» and the Repair and Engineering Department of PJSC «Azovsteel» a new enterprise has been established – Mechanical Repair Works (MRW) that is inside the Metinvest Group. In connection with the formation of the enterprise an organizational structure of metallurgical Works` departments has been reviewed - the highlight in the realization of the project on the organization of MRW is preservation of jobs, wages and privileges given to workers.

According to the plan Mechanical Repair Works will come into operation at full capacity in January 2014 as technologies develop and equipment, accessories and staff completes. At this stage repair bays ensuring the continuity of the basic production and which are economically unpractical to transfer to MRW will remain at metallurgical Works.

High-grade repair services are necessary for all Metinvest enterprises. But the specialists’ analysis has shown that each of the enterprises having a number of own capacities on spare parts production can’t work in such a isolated condition more effectively than this is required by manufacturing situation. That’s why it was planned to create a specialized works on the basis of the best repair capacities.

The new enterprise will accomplish the orders of all metallurgical enterprises that are inside the Metinvest Group, but not only the orders of PJSC «Ilyich Iron and Steel Works of Mariupol» and Repair and Engineering department of «Azovsteel», where the shops of Mechanical Repair Works are situated directly. As a result the quality of labor planning and organization will increase and as a consequence the quality of rendering of repair services in whole will increase too.

For strengthening the production facilities of the formed Works it is planned to invest over 24 million ghrivnas.

«A single control system will allow minimizing all the costs connected with production process. The aim of reorganization – increase in quality of repair works organization, creation of clear system of repair works controlling. Besides the task has been set to increase the prestige of such a profession as repairman, transfer it to the category of basic but not auxiliary production», - marked the chief of intercommunication control department of PJSC «Ilyich Iron and Steel Works of Mariupol» Olga Bashkirova.

«It will be an effectively acting Works on the production of integral implements spare parts for all the enterprises within the metallurgical division of Metinvest Holding. Today approximately half of spare parts are purchased from off-site organizations taking into account the fact that most of that we can produce by ourselves with high quality, competitively and effectively.

The new plant has guaranteed sufficient market outlets for its services and confidence in the ability to cope with them because of the availability of capacities and qualified personnel that can accomplish assigned tasks qualitatively and in time» - commented the event the General Director of Mechanical Repair Works Aleksey Belyaev.

For editors:

PJSC «Ilyich Iron and Steel Works of Mariupol» is one of the greatest enterprises in Ukraine with full metallurgical cycle. The Works produces pipes and flat rolled products of carbon, low-alloy and alloy steels for different applications: hot-rolled plates and sheets intended for the production of pipes for main pipelines, ships, pressure vessels, bridge constructions, other metal constructions for critical application; hot-rolled plates, sheets and strips including pickled; cold-rolled, including galvanized, bands, sheets and strips, including for cold stamping, flooring and others; thick-walled pipes including for oil pipe lines; water- and gas-supply welded thin-walled pipes of circular section and structural pipes of rectangular section; flasks for different compressed gases, including automobile and others.

50 certificates issued by seven International Certification Bodies and Ukraine Certification Centers confirm the high quality of the metal products of 200 steel grades produced at the Works. Quality Management System functions at the PJSC «Ilyich Iron and Steel Works of Mariupol» developed and certified according to the requirements of ISO 9001.

Production facilities of the Works allow to produce about 6,1 million tons of steel per year, 12 million tons of agglomerate, more than 5,5 million tons of pig-iron, more than 6,1 million tons of steel including converter steel – 3,6 million tons, more than 5 million tons of finished rolled products.

METINVEST is an international vertical-integrated mining-and-metallurgical Group of companies, which runs assets in every link of production chain from iron-ore and coal mining till semi-finished and finished metal products manufacture. The structure of the Group comprises mining and metallurgical enterprises in Ukraine, Europe and USA, and sales network covering the key world markets. METINVEST GROUP consists of Metallurgical and Mining Divisions. According to the strategical vision of the Group its aim is to become lead European vertical-integrated steel producer with stable ratio of growth and cost effectiveness in spite of market cyclicity, and to ensure investment return higher than industrial standards. In the first half of 2012 the Group has received US$6,74 milliards of sale proceeds, cost effectiveness by EBITDA was 16%.


The main shareholders of METINVEST B.V. Company (holding company of METINVEST GROUP) are SKM GROUP (71,25%) and SMART-HOLDING (23,75%),  which control Company at partnership relations.