OREANDA-NEWS. November 16, 2012. Metinvest Group's senior management and the shareholders are concerned with the environmental situation in Mariupol.

Despite a deep recession in the steel industry Metinvest Group, as a socially responsible company, follows its commitments and continues to implement a large-scale modernisation programme, replacing obsolete production facilities at Azovstal, Ilyich Steel Plant and other companies of the Group. In particular, an open hearth workshop, three coke oven batteries and a blast furnace were decommissioned at Azovstal as part of this programme. Metinvest is also implementing a technology of pulverised coal injection and a large-scale reconstruction of sintering facility at Ilyich Steel Plant.

Therefore, we will suppress any speculations and attempts of the organisers of the environmental rally in Mariupol to misinform the public. They spread information about super profits of steel makers and unwillingness of Metinvest to invest in modernisation of its steel companies in the city.

In reality Azovstal and Ilyich Steel Plant made a total loss over UAH 10bn from 2009 to October 2012 and covered the losses at the expense of Metinvest shareholders' funds. We clearly understand our responsibility for the future of Azovstal and Ilyich Steel Plant employees and the city. Despite deep economic and financial recession we continue operating the companies and paying salaries to employees and our companies still account for over the half of the city budget. Shutdown of our enterprises will imply shutdown of the city. We use our "super profits" to finance the first large-scale reconstruction over the last 50 years. Therefore, we ask public activists to take into account all the facts, tell the truth and be honest in defending their interests.

Sharing the concern of Mariupol residents over smog during unfavourable weather conditions in the city, Metinvest's management carried out a thorough analysis of the situation. Our specialists believe that bad smelling smog could come from Azovstal Steel Plant, in particular, it could be generated during utilisation of secondary materials from sludge collector at the Azovstal sintering facility, which is drained under the approved Azov Sea Protection Environmental Programme. These secondary materials have high content of organic compounds, in particular, peat.

Metinvest's management decided to take additional measures to improve the environmental situation in Mariupol and shut down Azovstal sintering facility for a month from 12 November to carry out diagnostics of treatment facilities and eliminate possible defects. Also, it decided to use as little secondary materials with organic compounds as possible.

In addition, Metinvest will speed up the modernisation programme and start shifting some production operations from Azovstal to Ilyich Steel Plant to complete decommissioning of Azovstal sintering facility till the end of 2016.