Ukraine’s biggest private company, Metinvest, plans to spend over $1.2bn upgrading its enterprise this year. This is a continuation of the iron and steel company’s vast modernisation programme, which saw productivity jump by 5% in 2020.

The planned investment represents an 18% increase in capital expenditure compared to the previous year.  It will see environmental improvements – like the reconstruction of dedusting systems, which will cost over $180mn, and represents the largest environmental project in the Group’s history. The spending programme will also see improvements in the productivity of operations, and also investments in the communities where the company operates.

Metinvest is one of the world’s leading iron and steel producers, with a consolidated revenue of over $13.5mn in the first nine months of 2021 alone. The company made a series of big acquisitions last year, and is now in the process of modernising its assets, trying to become more self-sufficient.

In 2021, for example, the company launched a major project to build a new cold-rolled, galvanised and colour-coated coil production facility at one of its steel plants. Total investments in the project will exceed $1bn. This will allow the Metinvest to replace over 1mn tonnes of imports with its own products.

Throughout its 16 years, Metinvest Group has invested over $11bn in production modernisation.

In a press release detailing its planned investments, the company was also keen to stress its investments in the local areas where it operates.

In the city of Mariupol in Donetsk Oblast, for example, the company has started building Metinvest Polytechnic, Ukraine's first private technical university. The company says that the new institution will cost it over €30mn. Metinvest Polytechnic will be free of charge for Ukrainian citizens.

Metinvest says that its social investments over the past 16 years – including in sports, education and culture – have exceeded $120mn.

Yuriy Ryzhenkov, CEO of Metinvest Group, said:

“Metinvest has demonstrated the highest level of patriotism and belief in the state by investing a record sum of money in the Group’s history into the industrial development in Ukraine. Last year, we invested over $1bn in projects that make Ukrainian industry more modern, competitive and environmentally friendly. At the same time, our investments are not limited to production. We do everything possible to make cities comfortable places to live and work in and to make Ukrainians proud of their country.”