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Cooperation of Metinvest with Khartsyzsk is supported by a new agreement

3 April 2013

KHARTSYZSK PIPE PLANT of Metinvest Group and Town Council of Khartsyzsk have signed a social partnership agreement. The agreement is aimed at the social and econom-ic development of Khartsyzsk. As part of the agreement, there was made a decision to in-crease financing for social programs almost by 30%.

The agreement was signed by the Acting Director General of KHARTSYZSK PIPE Pavel Uzbek and Mayor Valery Dubovoy.

During the meeting, the results of cooperation in 2012 have been summed up. KHARTSYZSK PIPE investments in projects of social partnership in the past year amounted to more than UAH 3.6 mln. One of the exciting projects was the opening of a new computer interactive class in Khartsyzsk vocational school, which is fully equipped with the office equipment to conduct classes effectively.

Stable operation of KHARTSYZSK PIPE PLANT allowed it to take part properly in filling the town's budget. Contributions to the local budget following the results of 2012 amounted to UAH 23.8 mln. (It is 29% of the municipal fund).

In 2013, on the implementation of activities under the Agreement signed, KHARTSYZSK PIPE is planning to assign more than UAH 4.6 mln. Repair of the admission department and acquisition of the diagnostic equipment for the Central Town Hospital, start of works on reconstruction of the town stadium (the development of construction documents), and implementation of energy efficiency projects in child care centers, etc will be the key projects.

Implementation of programs "We improve our town" and "Healthy environment is everyone's business" will also be continued.  Activity of Khartsyzsk branch of the junior football academy of FC "Shakhtar" will be maintained, projects for the development of volunteering will be implemented.

"Our collaboration with the town was effective: all liabilities given by the plant in last year have been fulfilled, acting Director General of KHARTSYZSK PIPE Pavel Uzbek says. In 2012, we invested UAH 3.6 mln in social programs of the partnership., This year we plan to invest 1 million more. We are focused on long-term prospects in improving living standards of our townpeople, and today's signing of the agreement on social partnership is the best proof".

"The signing of the agreement on social partnership has become a tradition, Mayor Valery Dubovoy said. Metinvest makes a lot for the development of infrastructure in the towns of presence. It is gratifying to note that we have moved from a fragmented care to the whole program of long-term cooperation, which covers almost all aspects of the town’s life. I hope that this program will be expanded each year, and citizens and plant employees will feel the benefit from it and keep all our undertakings".

For editors:

PUBLIC JOINT STOCK COMPANY KHARTSYZSK PIPE PLANTis the largest in Ukraine and one of the largest enterprises in Europe for pipes manufacture. The company manufactures longitudinal SAW large diameter pipes (508-1422 mm in diameter) with external anticorrosion and internal anticorrosion or flow coating for main oil and gas pipelines. Plant’s facilities permit to manufacture more than 1 mln. tons of pipes per year, including 700 thous. tons of coated pipes.

The integrated Management System ensuring stable high quality of the products to the customers is functioning at “Khartsyzsk PIPE PLANT”. ISO 9001, ISO 14001, OHSAS 18001, API Spec Q1, DSTU ISO 9001, GOST R ISO 9001, STO Gazprom 9001 create its foundation. Products of the plant are certified according to API, EN standards and in the national system UkrSEPRO. Welding processes are certified as per ISO 3834-2.

More than 630 thous. tons of large diameter pipes were produced at “KHARTSYZSK PIPE PLANT” in 2011 that became the record over the last 20 years.

In September, 2010 “KHARTSYZSK PIPE PLANT” became the first company among Ukrainian enterprises of Metinvest Group which started to implement “Lean enterprise” program and obtained significant results.

The top-priority goals in the social policy of “KHARTSYZSK PIPE PLANT” as a mainstay of the entire town are implementation of social programs and activities in education, health service and improvement of town infrastructure. In 2011 the volume of social investment of the company was more than 1.3 mln UAH.          

“Khartsyzsk PIPE PLANT” is a part of Metallurgical Division of Metinvest Group.

METINVEST GROUP is a vertically integrated steel and mining group of companies, managing every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. The Group comprises steel and mining production facilities located in Ukraine, Europe and the USA and has a sales network covering all key global markets. Metinvest Group is structured into two operating divisions: Metallurgical and Mining Divisions and has a strategic vision to become the leading vertically integrated steel producer in Europe, and to deliver sustainable growth and profitability resilient to business cycles, providing investors with returns at above the industry benchmarks. The Group generated US$6.74 billion of revenues and a 16% EBITDA margin for the first half of 2012.

The major shareholders of METINVEST B.V. (a holding company of Metinvest Group) are SCM Group (71.25%) and Smart-Holding (23.75%), partnering in the Company’s management.

METINVEST HOLDING, LLC is the managing company of Metinvest Group.

For additional information, please, visit http://pipe.metinvestholding.com/en

Contact person:

Victoria Lyashenko 
Acting Head of Corporate Communications Department
+380 (6257) 59879