Investments in support and modernization of production facilities reached UAH 9.94 billion
The volume of capital investment in the steel production, manufacture of finished steel products, except for machinery and equipment sector increased by 55.8% in 2023 compared to 2022 – to UAH 9.93 billion. This is according to the State Statistics Service.
In the first quarter, investments in the production facilities of steel enterprises amounted to UAH 1.32 billion (-24.1% y/y), in the second quarter – UAH 1.93 billion (+45.4%), in the third quarter – UAH 2.81 billion (+85.5%), and in the fourth quarter – UAH 3.88 billion (+115.9%). Thus, the bulk of investments occurred at the end of the year, but the indicator was marked by a gradual quarterly increase throughout the year.
Capital investments in the mining and quarrying sector in 2023 reached UAH 59.09 billion, up 169.2% compared to 2023, in particular:
- I quarter – UAH 11.4 billion (+87.5% y/y);
- II quarter – UAH 14.34 billion (+213.1%);
- III quarter – UAH 16.54 billion (+218.3%);
- IV quarter – UAH 16.8 billion (+175.8%).
In 2023, the total volume of capital investments in Ukraine’s industry increased by 79.5% y/y – to UAH 169.94 billion. The iron and steel sector accounted for 40.6% or UAH 69.03 billion.
Despite the difficulties of wartime, the Ukrainian iron and steel sector continues to invest heavily in maintaining and modernising its facilities and is one of the main investors in the country’s economy.
In particular, Metinvest Group invested $284 million in production facilities in 2023 despite the enormous losses caused by the occupation, destruction and export obstacles. Of this amount, $65 million was invested in steel production and $213 million in mining. This year, Metinvest plans to invest $320 million in capital and about $350 million in operating investments in equipment and work sites. Finally, within 5-10 years after the end of the war, the group plans a large-scale green transformation of its Ukrainian assets – Minings, Kametstal and Zaporizhstal – worth around $9 billion.
In 2023, Ferrexpo invested $101 million in production, including projects launched before the full-scale invasion. In the first half of 2024, the company invested $55 million (maintenance and modernisation – $19 million; strategic development projects – $36 million).
Interpipe invested $31 million in production facilities in 2023 and $21 million in 2022. The company recently presented a major investment project worth about $1 billion, which involves the expansion of green steel production facilities.
ArcelorMittal Kryvyi Rih’s capital investments over the two and a half years of war totalled UAH 9 billion ($217.4 million). In 2024, the company plans to increase its investments to $155 million.
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