In the face of the court’s decision to declare Liberty Częstochowa Steelworks bankrupt, the next month will be marked by a search for a facility lessee. The goal is to restart production as soon as possible. One of the entities that has the financial resources and extensive technical knowledge required to relaunch and successfully operate the Steelworks is an international mining and metallurgical group.
Yes, We Are Considering the Lease of the Steelworks
According to media reports, among entities potentially interested in leasing the assets of the Steelworks, the Ukrainian Metinvest was included in the shortlist.
“We can confirm that we have been invited to consider leasing the assets of the Steelworks, with the possibility of taking it over later on. At present we do not yet know the condition in which the former owner left the plant. We need to carry out a thorough assessment, including comprehensive due diligence, on which the Steelworks restart date would depend” – said Dmytr Nikolajenko, Commercial Director in the Metinvest Group.
When asked about the prospect of the Steelworks, Nikolajenko replied: “In its history, Metinvest tends to buy and develop assets rather than sell them. Furthermore, we have never lead any asset to bankruptcy as we plan strategically and long term.”
Development Prospects for the Steelworks
Every company that plans for the long-term invests regularly. This particularly applies to capital-intensive industries such as metallurgy. In this context, it is worth remembering that in July this year, Metinvest made the list of the top 10 investors in Ukraine, as per the report prepared by dsnews.ua. Meanwhile, the globally operating Group is prepared to sell their products in 95 countries through an extensive sales and distribution network. Metinvest has 21 offices worldwide, underscoring their global reach.
“Our goal, in the context of potential engagement in Częstochowa Steelworks future, is to meet the diverse needs of customers. We are prepared to serve all available markets, considering both Ukraine and European Union countries. Besides Ukraine, we have production plants in Bulgaria, Italy, the UK, and the US” – says Dmytr Nikolajenko.
Since the beginning of full-scale war, Metinvest has become a pillar of the Ukrainian economy. The Group is also one of the biggest taxpayers in the industry. Regarding the geopolitical situation, note that in the post-war reconstruction phase, Ukraine will need significant amounts of steel. This indicates a potential for substantial benefits from linking the future of the Częstochowa assets with Metinvest’s activities, also due to the possibility of supplying necessary raw materials because of the proximity of the Steelworks and the extensive railway connection with Ukraine.
Strategic Investments in Business and People
Despite the crisis in the Ukrainian mining and steel industry, caused by war and massive labor market challenges, the Group has rebuilt its business, while placing a particular emphasis on caring for its employees. In 2023, Metinvest ranked among the top five best employers in Ukraine according to TOP 100 magazine.
Metinvest also regularly invests in the development of staff competencies for the needs of science and business development, including through a privately-owned mining and metallurgical university (Metinvest Polytechnic University). Currently, the university employs 127 lecturers, including 33 professors and 84 assistant professors. The university offers 16 undergraduate programs and 18 master programs. The main areas are metallurgy, mining, automation and computerization, as well as ecology and safety at work. This presages the potential transfer of knowledge and best practices to local markets.
Source: https://managerplus.pl/ukrainski-gigant-zainteresowany-huta-czestochowa-99440
