Metinvest merging repair and casting divisions into one specialized company
MOSCOW. April 13 (Interfax) - Zaporozhye Foundry and Mechanical Plant LLC (ZLMZ), which was set up at the production facilities of Metinvest Group's PJSC Zaporozhstal in 2016, will consolidate specialized divisions in Zaporozhye, Krivoi Rog and Kamenskoye under one management, Ukrainian media reported, citing a Metinvest press release.
The goal of the integration is to increase the operational efficiency of the group's repair divisions by distributing orders and maintaining production facilities, Metinvest said.
The consolidated company will be headed by acting ZLMZ CEO Igor Dolgozvyago.
Metinvest said it has already begun the process of merging ZLMZ and the Krivoi Rog Repair and Mechanical Plant (KRMZ) into one company with three branches.
"We will significantly expand the line of products and range of repair services and fully meet the need for replacement of equipment and spare parts that Metinvest purchased from outside manufacturers. The combined capacity of ZLMZ production facilities in Zaporozhye, Krivoi Rog and Kamenskoye will total up to 35,000 tonnes per year," Dolgozvyago was quoted as saying in the press release.
ZLMZ makes a wide assortment of products for Metinvest's metallurgical, coke, ore processing and coal mining divisions. KRMZ, a 60-year old plant that repairs equipment for mining and metallurgical operations, became part of the group in 2016.
Metinvest said in another press release that its iron ore mining division Northern GOK is continuing to bring idled capacity back on line to increase production. The number of operating divisions at the No. 1 ore processing plant, which produces high quality A-1 concentrate, has increased from four to seven. This will help to fully meet April targets, the group said.
In addition, the company has resumed suspended capital repairs involving replacement of water pipes for the first-stage hydraulic sealing system.
Northern GOK, which specializes in producing iron ore concentrate with 65.8% iron content and pellets with 63% Fe, has capacity to produce over 13 million tonnes of concentrate and about 8 million tonnes of pellets per year. It includes the Pervomaisky and Annovsky open-pit mines, two processing plants, two pellet shops and auxiliary infrastructure.
Metinvest is a vertically integrated mining and steel group that is 71.25% owned by Rinat Akhmetov's SCM and 23.75% by Vadim Novinsky's Smart Holding.