Metinvest has suspended the work of two of its erratic companies in Italy. This decision was made in connection with the pandemic virus COVID-19 and to the requirements of the Italian government on the suspension of the metallurgical enterprises of the country.
Italian factories of the Group Ferriera Valsider and Metinvest Trametal to counter the spread of the virus closed until April 3, 2020. It is expected that in the stop period, the volume of production at these plants will decrease up to 40 thousand tons. The group does not exclude that the Italian government may impose additional restrictions on the operation of enterprises of the metallurgical industry in which the restrictions on all or the major part of the operating processes at Ferriera Valsider and Metinvest Trametal will be renewed. At the same time, the presence of the warehouses of enterprises semi-finished products will quickly resume the normal rate of work immediately after release from quarantine if there is demand for steel.
In the case of extension of the restrictions in the Italian factories, and the continuing instability in the European market, Metinvest expects the production decline and its Ukrainian plants – first and foremost, on "Azovstal". The group is considering a complete stop slab production at this plant.
in addition, there is the option to stop blast furnace №3 at PJSC "Azovstal" and postponement of the launch is stopped for capital repair of blast furnace No. 4 at Ilyich iron and steel works and No. 4 at PJSC "Azovstal" (April-may). In turn, the "Zaporizhstal" steel works (joint venture) does not preclude the postponement of the launch of blast furnace No. 5 after a planned renovation. A final decision on the launch of the furnaces, the work will be based on availability of orders in April and current world situation.
Excessive amounts of iron ore produced in mining and processing plants of the Group in Krivoy Rog because of the possible decline in iron production, will be aimed at traditional markets – particularly in China.
