Metinvest is the largest mining and metallurgical holding in Ukraine, which unites mining and metallurgical enterprises in Ukraine, Europe and the USA. The company controls the entire production cycle – from ore and coal mining to the production of metal products, writes IZ. Its products are sold in more than 80 countries around the world, and the staff has about 60,000 employees. Metinvest is a key player in the metallurgical industry, which determines the development of the Ukrainian economy and forms its presence in international markets.
Content
- History of creation
- Owners and management structure
- Who is the CEO of the company?
- Metinvest's financial indicators
- Revenues and profits
- Metinvest cost
- Main challenges and prospects
- Loss of key assets
- European direction
- Military direction
History of creation
Metinvest was founded in 2006 by merging the mining and metallurgical assets of Rinat Akhmetov's SCM group, which included the Northern and Central Mining and Processing Complexes, Avdiivka Coke Plant, Azovstal, Yenakiyivka Metallurgical Plant and Khartsyzsk Pipe Plant . In 2007, the group acquired the assets of Vadim Novinsky's Smart Holding , which included Ingulets Mining and Processing Complex, Makiivka Metallurgical Plant and the Bulgarian Promet Steel . As a result of this merger , Metinvest became the dominant player in the field of iron ore mining in Ukraine , controlling a significant part of the domestic raw material market.
During 2010-2013, the company actively increased its assets, in particular by acquiring control over the Mariupol Ilyich Metallurgical Plant , and in 2011 it received operational control over the Zaporizhstal Plant . In 2009, the group entered the international market by acquiring the American company United Coal Company , which allowed it to cover a significant part of its coking coal needs.
Owners and management structure
The main shareholders of Metinvest are:
- Rinat Akhmetov's SCM (75% – 1 share)
- Vadym Novinsky's Smart Holding (25% + 1 share)
The company's head office is located in Kyiv, and the group's managing company is Metinvest Holding LLC, a subsidiary of Metinvest BV, registered in the Netherlands.
Who is the CEO of the company?
Yuriy Ryzhenkov has been the CEO of Metinvest since 2013. He plays a key role in the strategic development of the company, coordinating its activities in the face of geopolitical challenges and economic changes. One of Ryzhenkov's main priorities is to expand Metinvest's presence in the European market and develop new production facilities outside Ukraine.
Metinvest's financial indicators
Revenues and profits
According to Forbes, in 2023 the company's financial performance looked like this:
- Revenue : UAH 270.5 billion
- Profit : -7.1 billion UAH
- Annual revenue growth : 2%
In 2021, Metinvest delivered record financial results, with net income of $4.8 billion and EBITDA of $7 billion . However, the full-scale Russian invasion caused significant losses for the company.
Metinvest cost
The value of a company depends on its assets and financial performance. As of 2021 , when the business was at its peak, the company was valued at $10-12 billion . However, due to the loss of its core assets in Mariupol and the reduction in production capacity, its market valuation has decreased. In recent years, the group's investment focus has shifted to Europe , in particular, to the construction of a metallurgical plant in Italy worth €2.5 billion.
Main challenges and prospects
Loss of key assets
Metinvest lost Azovstal, Ilyich Iron and Steel Works, and Avdiivskyi Koksohim , which caused the company losses of $3.5 billion . In response, the company is investing in the development of other capacities and the expansion of the European market.
European direction
Metinvest has planned to build a new plant in Italy with a capacity of 2.7 million tons of steel per year in 2024-2025. This plant will be an important step in the company's strategic development, allowing it to compensate for the loss of Ukrainian assets.
Military direction
Metinvest is actively engaged in the production of armored elements for military equipment, including protection for Bradley and Abrams, on a charitable basis. The company is also ready to work systematically with the Ministry of Defense of Ukraine, subject to receiving government orders.
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