From mid-June, the Metinvest group of Rinat Akhmetov and Vadim Novinsky began the process of suspending the work of mining and processing plants in Krivoy Rog.
In particular, from July 1, production will be suspended at two mining and processing plants in Krivoy Rog (Inguletsky GOK and the joint venture Yuzhny GOK) and the work of Kametstal (the former Dneprovsky Iron and Steel Works) in Kamensky will be reduced to one blast furnace. From mid-July, production at the Northern GOK will also be suspended. Of the group's mining and processing plants in Ukraine, only the Central GOK will continue to work at reduced capacities.
The press service of Metinvest explained the start of production shutdowns by logistical factors, an increase in production costs and a fall in product prices.
“The high cost of production of metal products, which is constantly growing due to the increase in energy prices, in particular natural gas, raw materials, and the lack of demand for metal products in the domestic market of the country, which decreased by more than 2/3 compared to February of this of the year,” the press service of Metinvest noted.
