Leading Industrial Enterprise Completing Major Upgrade

Dnieper Metallurgical Works Dzerzhinsky (DMKD), Ukraine’s biggest industrial enterprise, is looking to expand its market share. The company was privatised in February 2004 and is now part of the global ISD group. DMKD specialises in providing world-class business-to-business services and produces over 5,500 tonnes of sinter, over 3,200 tonnes of pig iron, over 3,550 tonnes of steel and over 3,800 tonnes of finished steel per year. The company is the exclusive supplier of rolled billet axles for railway transport in Ukraine.

DMKD’s production facility is now equipped with the latest equipment and technologies and continues to be improved through an extensive project launched by ISD with the support of international partners Duferco (Switzerland), Siemens (Austria) and Danieli (Italy). Thanks to this upgrade, DMKD can meet US standards and offer longer-than-usual warranties.

CEO Zavgorodnii Maxim Sergeevich, who has been with ISD for 14 years, explains the decision to modernise the plant. He says, “We are shifting our focus from B2B to B2C. To improve our production, we decided to make major investments in our operations, equipment, technologies and human resources. When we complete this investment drive in March 2014, we will boost our production capacity to one million tonnes per year.”

Supplying global markets

Like all industrial manufacturers, DMKD must cope with fluctuating prices for both raw materials and sales of final products, but the company’s international reach helps it meet these challenges. Around 80% of DMKD’s production goes to Middle East, Egypt and Turkey, while the remainder is sold in Ukraine, Russia, India and other markets. “Our products for construction are sold mainly in Ukraine and Russia, but we also sell to Canada and the US,” Zavgorodnii Maxim Sergeevich says. DMKD has its own shipyard in Gdansk, where it operates a plant producing hot rolled billets. The shipyard helps the company ensure efficient international distribution of its products.

DMKD will continue to invest in the future. Zavgorodnii Maxim Sergeevich explains, “We will continue to develop steadily and to further improve our technologies. We aim to implement higher environmental-protection standards in the near future for both air and water pollution. We also aim to step up our partnerships with local cement companies; already our waste products go into the construction of every road in our region. Next year our company will celebrate 125 years of operations. This longevity demonstrates our commitment to quality over the years.”