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Dnipro plant is expected to increase EBITDA

12 January 2016

Dnepropetrovsk Iron and Steel Works named. Dzerzhinsky part of the corporation «ISD». It is expected that in 2015 the company managed to increase its EBITDA by 4 times. If the 2014 figure was 10.9 million. USD, in 2015 it reached 41 million. USD. According to Vyacheslav Mospan, general director of the plant, the work was stable in 2015. The company was able to remain in the positive zone margins. At the same time felt the negative impact of external factors on the course of the year. Among them fall in product demand and the fall of its value on the world market. The volume of sold pieces and balls for railway axles halved. These categories at the same time are high margin products. The reasons for the decline of the plant is not dependent.

As a result, the size of lost profits amounted to 12.8 million. USD. Reducing the cost of virtually all metal-roll has taken away from the company 341.6 million. USDdohoda. As a result, a negative result has been reduced to 12 million. USD. Relative success is linked to the fall in raw material costs. It amounted to 329.6 million. USD. Also in the list of negative factors included the unstable supply of coke and iron ore. As a result, the planned production volumes fell by 600 000 tonnes. Accordingly decreased and profit fell by 8.6 mln. USD. Preliminary calculations indicate the volumes of steel production at the 2014 level. They totaled 2.5 mln. Tons. The main efforts were directed at reducing workers spent the rules of basic materials, raw materials and energy. Is reduced and the cost of production. As a result of the measures taken has been saved 105 million. USD.

Work on the modernization of blast furnace processes. It is expected that this trend will achieve high economic indicators. There is yet another object with which the company has high expectations. It is a renovated mill 400/200. Mastering a new profile, the plant increased its production of long products. If in 2014 they reached 111 000 tonnes, in 2015 figure was 420 000 tonnes. At the end of 2015 the average monthly production of long products reached 44 000 tons. This figure is 60% of the production capacity of the mill. In 2014, its operation has allowed the company to receive 8 million. USD. In 2015, with his help was earned 23 million. USD.

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