Yatsenyuk orders strengthening defense of Avdiyivka city
22 January 2015
Pro-Russian separatists are targeting for destruction Avdiyivka Coke (AVDK UK), a part of Metinvest (METINV) and the largest coke producer in Ukraine. Bombardments of the plant have continued for ten days, Ukrainian Prime Minister Arseniy Yatsenyuk said on Jan. 21. He has ordered including Avdiyivka in the list of locations being defended by the government’s anti-terroristic operation, as well as strengthening the city’s defense. Avdiyivka borders Donetsk, which is the stronghold of the pro-Russian terrorists.
Roman Topolyuk: Avdiyivka Coke is the largest in-house coke supplier for Metinvest, and used to cover more than 67% of the holding’s coke needs, before the warfare started. The enterprise has been cut off from its power supply numerous times since August 2014, and had to operate in idle mode or reduced capacity load. As of mid-January, several auxiliary production facilities at Avdiyivka Coke are damaged, while the railway route of coal supplies to the plant was destroyed.
Avdiyivka Coke continues to operate at 25% capacity load, but stockpiles of coking coal are about to end in a few days, according to the latest information offered by the Metal Courier trade publication.
Further material damage done to the enterprise will have a negative impact on Metinvest, as around 2% of the holding’s EBITDA has been generated by Avdiyivka Coke. Moreover, without its internal supplier, the holding would have to purchase coke on the external market, were the supply may be scarce.
