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Metinvest denies allegations of alleged collusion in tenders of Ukrzaliznytsia

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Metinvest denies allegations of alleged collusion in tenders of Ukrzaliznytsia

The international vertically integrated mining and metallurgical group of companies "Metinvest " denies accusations of alleged collusion in tenders of PJSC "Ukrzaliznytsia ", emphasizes adherence to the best international practices of tender procedures.

According to the company's statement sent to the agency "Interfax-Ukraine " on Tuesday, the enterprises of "Metinvest " sell their products to end consumers not only through the enterprises of the group (SMC), but also by providing free access to products to independent traders and distributors. At the same time, the group does not interfere in any way in the economic activities of such traders and distributors. Their choice of sale methods (by taking part in public procurement or in a free market) and buyers, as well as negotiating with them and forming pricing is entirely their commercial initiative.

As noted in the document, "Metinvest-SMC ", within the framework of the law "On public procurement " and taking into account the best European practices, has consistently taken the initiative to implement the contractual terms on formula pricing during tender procedures, which will contribute to transparency prices and their relevance to the market. The enterprises of the Metinvest Group (in particular, Metinvest-SMC) strictly comply with the requirements of the current legislation and duly fulfill their obligations as a result of public procurement procedures, regardless of the price increase in the rolled metal market. Shipment of products is carried out at fixed prices of contracts concluded on the basis of tenders. In addition to competition from Ukrainian distributors and traders, products of foreign manufacturers (Voestalpine Schienen GmbH Austria, Vossloh Fastening Systems GmbH Germany, Plastwil Sp.z oo Poland, Schwihag AG Switzerland) and their dealers compete with the products of the Metinvest group, and also a number of manufacturers from the CIS countries.

So, at the end of 2020, "Metinvest-SMC " shipped 45.5 thousand tons of rail under a contract within the framework of financing from the European Bank for Reconstruction and Development (EBRD) at a price significantly lower than the official price list of the company amid a significant increase in world prices on a square workpiece. Moreover, at the tender, "Metinvest-SMC " offered a price significantly lower than the minimum price of other manufacturers, the group said in a statement.

"Metinvest " is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine - in Donetsk, Lugansk, Zaporozhye and Dnepropetrovsk regions, in European countries. In particular, in Bulgaria there is a Promet Steel plant with a capacity of 500 thousand tons of rolled metal per year, in Italy - Metinvest Trametal and Ferriera Valsider with a total capacity of 1.2 million tons per year. In the UK, the company owns a Spartan UK plant that can produce 200,000 tonnes of rolled steel per year.

Metinvest-SMTs LLC is a wholesale and retail sales channel for Metinvest's products in Ukraine. The company sells products of the enterprises of "Metinvest ", as well as other metal producers in Ukraine and the CIS countries. Thanks to vertical integration in the Metinvest group, the company provides the most favorable conditions from the largest manufacturers. "Metinvest-SMC " has a network of service metal centers with a total stock of commercial rolled metal products over 100 thousand tons and the most complete assortment (over 1000 items).

The main shareholders of Metinvest are SCM Group (71.24%) and Smart Holding (23.76%), jointly managing the company.

LLC "Metinvest Holding " is the management company of the "Metinvest " group.

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