A Steely Resolve: Zaporizhstal's Resilience in Adversity
By Strategic Research Institute on May 30, 2023 11:27 am
In the heart of Zaporizhia, Ukraine, the Zaporizhstal plant, a joint venture of the Metinvest Group, braves the risk of hostile bombings to melt steel. Amidst the ravages of war, the Ukrainian steel industry remains one of the country's most vital economic sectors, mobilizing its resources to support Ukraine's triumph. Just 40 kilometers away from the frontline, in a partially occupied region, Zaporizhstal, one of Ukraine's largest metallurgical complexes, continues to melt steel.
With a deafening roar, the red-hot block is hurled into the rolls of the rolling mills. On the other side of the powerful machine, the rolls and thick metal sheets, still smoldering, await loading. They will be shipped to Italy, as explained by Artem Kalinievich, a 33-year-old line manager who has been working at the plant since 2009.
The Russian invasion on February 24, 2022, disrupted production processes and logistics. "Initially, we didn't know what to produce; we had to rethink everything. Only for Poland did the processes remain unchanged," he explains. After the occupation of the Azov Sea shores by Russian forces and the blockade of Black Sea ports, new supply routes for production and raw materials needed for blast furnaces had to be found. According to CEO Roman Slobodyanyuk, the plant lost markets in Asia, North Africa, and Turkey, forcing it to redirect its focus to Europe, which is more accessible by land.
These challenges are compounded by the proximity to the frontlines. Zaporizhia regularly endures Russian shelling. "Every day when the air raid siren goes off, we fear that our plant may come under attack," says Artem. Despite the extensive underground shelters at the massive complex, the specialists working in the rolling mill, melting metal, or pouring steel into converters cannot leave their workstations. "Production is continuous. If we suddenly stop, it becomes a hazardous situation. So, yes, we worry, but we must continue working," explains the manager.
A 33-day suspension of operations was imposed on the plant at the start of the conflict. "Such a shutdown hadn't happened since World War II," reveals Roman Slobodyanyuk. Slowly, work resumed in April 2022 at a reduced pace. "Currently, the plant operates at 70% of its capacity, with three blast furnaces out of four," says the CEO. The workforce has also diminished, with 8,000 employees compared to 10,000 fifteen months ago. Another thousand workers were conscripted into the army, and mobilization orders continue to arrive regularly, according to one of the workers.