Donetskkoks has stopped operations for an indefinite period because of interrupted supplies of raw materials and shipments of finished goods.
In Q4 2015, Metinvest mothballed production at Donetskkoks in Donetsk. The company’s press office explained the decision as follows: “First of all, this is about logistics problems: today we can hardly supply raw materials and market finished commodities. Second, it is about a lower demand for the plant’s products caused by the cutback in steel production in Ukraine,” Metinvest replied to a request from Delo.UA. Before the mothball, all core shops were in operation except chemicals units. The plant’s key consumer is Yenakiive Steel Plant. Metinvest Group said the production was stopped without any current plans to resume operations. As to Donetskkoks’ production staff, Metinvest has said nothing about layoffs so far. “About
30 percent of the staff work to maintain core on-site equipment. Others receive two-thirds of salaries as required by laws of Ukraine,” the press office’s reply reads. Donetskkoks is one of Ukraine’s oldest metallurgical coke producer. As of Q3 2015, its majority shareholders were Netherlands-based Metinvest B.V. (56.2846%), Metinvest Holding LLC (24.5023%) and Illich Iron and Steel Works of Mariupol, a part of Metinvest Group (12.956%). In 2014, the plant employed 668 people on average and produced 203,100 tonnes of blast furnace coke, as specified in the company’s official reports. In January 2016, Donetskkoks completed its re-registration in Ukrainian government-controlled Mariupol.