Ukrainian metallurgy challenges global crisis with vacations and repairs

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Metallurgical companies of Donetsk region that are the support of the local budget were put on a slow run: 6 of 21 blast furnaces were shut down for repairs, which immediately told on the output of steel.

Compared to last September, the metal industry of Donetsk region reduced the output of cast iron by 21%, raw steel by 22.3%, and finished steel by 34%. The personnel were sent on vacation, had their workday cut, or given some other missions.

According to Viktor Kysil, deputy head of the industry and infrastructure development department at the Donetsk regional state administration, this situation owes to the global financial crisis. The region falls short of up to 15,000 tons of metal production a day as a result.

Banks are unwilling to grant credits, and the external business world is uneager to make big buys. Moreover, the price of Ukrainian metal is not competitive, Kysil regrets. Every-month rises in power carrier prices by 3% - 5% are an extra burden on production cost, especially when the railway made its services 15% more expensive.

Ukraine's metallurgical industry comprises 16 enterprises. In 2007, they put out 35.6 million tons of cast iron, 42.8 million tons of raw, and 36.2 million tons of finished steel. Metallurgy accounts for 27% of Ukraine's gross domestic product.

Donetsk region, having seven large-scale metallurgical mills, secures a half of the national metal output, employing about 150,000 people.

UKRINFORM