Metinvest suspends two facilities in Italy over coronavirus pandemic

International vertically integrated group of steel and mining companies Metinvest Group has suspended two of its rolling facilities in Italy until April 3, 2020, over the COVID-19 pandemic and the Italian Government's demands to suspend the operation of steel mills in the country.

"The Group's plants Ferriera Valsider and Metinvest Trametal in Italy are closed until April 3, 2020, to counter the spread of the virus. It is expected that during the shutdown the production volume at these plants will decrease to 40,000 tonnes," the Metinvest's press service said on its website on March 31.

In the event of an extension of restrictions imposed on Italian plants and continued instability in the European market, Metinvest forecasts a decline in production at its Ukrainian plants, primarily, Azovstal. The Group is considering a complete shutdown of slab production at the plant.

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"In addition, the option of stopping Blast Furnace No. 3 at Azovstal and rescheduling the launch of Blast Furnaces No. 4 at Ilyich I&SW [Iron and Steel Works] and No.4 at Azovstal that were shutdown for major overhauls (from April to May) is under consideration. In turn, Zaporizhstal I&SW (joint venture) does not exclude the possibility of postponement of the launch of Blast Furnace No. 5 after the scheduled reconstruction. Final decisions on the re-launch of furnaces will be made based on the availability of orders in April and the current situation globally," the press service added.

UNIAN memo. Metinvest Group is an international vertically integrated group of steel and mining companies, which is the largest in Ukraine and one of the largest CIS producers of iron ore raw materials and steel.

Its major shareholders are the financial-industrial groups of two Ukrainian oligarchs – Rinat Akhmetov's SCM with 71.24% of Metinvest's shares and Vadym Novinsky's Smart-Holding with 23.76%.