Donbas blockade: Yenakiieve Metallurgical Plant shuts down

Source : 112 Ukraine

Production at the Makiivka branch will be halted on 25 February 2017
10:02, 21 February 2017

Open source


Yenakiieve Metallurgical Plant and Krasnodon Ugol (Luhansk region) from the Metinvest Group, on the territories beyond Ukraine’s control, closed down operations due to continuous military activities and the railroad blockade in the area of the anti-terrorist operation. This was reported by the press-service of the System Capital Management.

Since the beginning of the conflict in the region, Yenakiieve Steel has experienced erratic supplies of iron ore. Following a blockade of the Yasinovata-Skotovata railway line, shipments of raw materials and finished goods are not possible for now.

Related: Scalpel: Trade blockade as demonstration of Ukrainian political problems

Yenakiieve Steel has completed preparations for temporary mothballing. A blow-out of blast furnace nos. 3 and 5 has been performed and the basic oxygen furnace shop has stopped operating. Production at the Makiivka branch will be halted on 25 February 2017.

In addition, Krasnodon Coal has halted coal production at all mines due to the blockade of railway transportation.

Related: Donbas blockade members intend to block connection with Russia

Yenakiieve Steel and Krasnodon Coal are registered in territory controlled by Ukraine and pay all taxes and duties to the state budget as stipulated in the country’s legislation.

Despite the suspended operations at Yenakiieve Steel and Krasnodon Coal, Metinvest takes its role as a corporate citizen of Ukraine extremely seriously and responsibility for its local communities equally. The Group’s plants are the main employers and economic anchors in their communities. Metinvest does not intend to reduce headcount at Yenakiieve Steel (including the Makiivka branch) or Krasnodon Coal. In addition, employees of the facilities will be transferred to two-thirds remuneration.


Related: G7 ambassadors called for ending blockade of coal supply in Donbas

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