In 2007 the production plan for all the main types of products has been fulfilled.
5626 thousand tons of sinter was produced, i.e. 21.2 thousand tons exceeding the plan; pig iron — 3563.8 thousand tons, 123.1 thousand tons of which was produced exceeding the plan; steel — 4456.5 thousand tons, which is 119.4 thousand tons more than planned and rolled stock — 3728 thousand tons, exceeding the plan by 86.9 thousand tons. In comparison with 2006 the growth of production amounted to the following: pig iron — 28.1 thousand tons, steel — 55.8 thousand tons, rolled stock — 55.7 thousand tons.
The Works ended 2007 with profits. The financial result before taxes amounted to 739.0 mln UAH. As compared to the level of 2006 this index is lower by 465.5 mln UAH, which is connected with the outrunning of prices on raw material and fuel-power resources, growth of prices on metal rolled products. Last year the profits on realization of commercial products gained 8847.6 mln UAH, which is 324.3 mln UAH more than planned and 1443.9 mln UAH more than the previous year. In this case the total cost of products as compared to the previous year has increased by 1961.4 mln UAH.
Costs per 1 UAH of realized products amounted to 96.65 kop., which is lower than the planned indices by 0.85 kop. All-in-all prime cost economy amounted to 81.7 mln UAH. However, due to application overrate of raw material and fuel, overcharge was acknowledged amounting to 55.1 mln UAH.
In the sintering plant consumption of lime stone increased by 20.9 thousand tons to keep a more higher basicity of sinter (plan — 1.38; actual — 1.43) due to the increased consumption of pellets in the blast furnace shop burden. The Works’ additional expenses amounted to 1.3 mln UAH.
In the blast furnace shop over consumption of metallurgical coke for the production of conversion pig iron amounted to 17.3 thousand tons at a sum of 18.7 UAH. The main reason for over consumption of coke is its deterioration (increase of ash, reduction of strength, increase of wearability, increase of 25 mm and +80 mm fraction content). There has also been over consumption of natural gas in the blast furnace shop burden amounting to 11791 thousand m3 at a total of 8.7 mln UAH (95.1 m3/t at a plan of 91,8 m3/t), which is connected with the increase of oxygen consumption (41.4 m3/t at a plan of 30.7 m3/t) for the purpose of raising the furnace-driving rate to increase pig iron production (10017 t/day at a plan of 9632 t/day).
In the open-hearth furnace shop over consumption of metal scrap amounted to 66.0 thousand tons at the sum of 91.8 mln UAH due to worsening of the structure of delivered metal scrap (the share of light scrap-iron increased by 6.5%, scrap by 4.0%, the share of heavy scrap-iron decreased by 4.3%).
Regarding consumption of metal for the production of rolled products there has been an economy amounting to 14.0 thousand tons at a sum of 6.4 million UAH.
The Works continuously carries out revamping and modernization of the fixed assets and equipment repair. In 2007 the jobs regarding air aspiration from the discharging parts of sintering machines 1-6. Construction of an aspiration cleaning unit is one of the environmental protection measures of the regional programme on overcoming the crisis. Capital repair of blast furnace No.5 has been carried out, the new air separation unit “ASU-60” has been put into operation, erection of the intermediate coiling device “coil-box” in the continuous hot strip mill line “1680”, mounting of the new turbo generator No.-35 mW has been carried out. In 2007 948.8 mln UAH have been spent on the fulfillment of running and capital repairs, revamping, modernization and capital construction.
Zaporizhstal JSC is continuing its active social policy. This sphere of activity for the Works is one of the most important ones and covers the needs of workers in the field of social-cultural, sports and health improving aspects. Last year the expenses on social activity and material reward of the workers amounted to 152.5 mln UAH.
The following tasks have been set before the collective: to achieve the production of pig iron up to 3526.6 thousand tons, steel — 4370.9 thousand tons, rolled stock — 3649.4 thousand tons; to provide further technical re-equipment of the Works, introduction of resource saving technologies and ecological programmes of production development, improvement of the quality and competitiveness of produced products, improvement of labour conditions of the industrial personnel. For this purpose it is necessary to conclude a contract on delivery of equipment and prepare the construction site for the building of an oxygen-converter shop; to continue reconstruction of sintering production; to begin construction of the PCI unit; to continue revamping of hot strip mill 1680, pickling line of cold-rolling shop No.1 with the construction of a hydrochloric acid pickling line; to put into operation 12 bell-type furnace units; to carry out a complex of jobs under the power saving programme, to replace off-market and physically worn-out equipment.
Deputy Financial Director — Head of the Production and Economical Department