08-06-2007Ilyich Iron & Steel Works facts |
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The economics of the State and of its separate regions is determined by the activity of the large enterprises, which are the basis of the economic potential of the State. Ilyich Iron & Steel Works is one of such enterprises, so let us examine its contribution into Ukrainian economics and increasing living standards of the employees of Ilyich Iron & Steel Works during four months of 2007.
The Gross Domestic Product is formed by fabrication of various goods. During the said period of 2007 Ilyich Iron & Steel Works produced the following products:
Products. Actual figures during 4 months of 2007
% out of the actual.
Thousand tons 4 months 2006
Pig Iron 1882.6 108.3
Steel 2378.2 106.0
Rolled stock 2022.9 106.3
The production of various goods increased by 5.1% comparing to the same period of the last year (in comparable prices). Ilyich Iron & Steel Works is export-oriented enterprise, and international market conditions in 2007 are not better than in 2006. The conditions of the world market of ferrous metals are still unstable.
The goods for 5618 million UAH were sold during the said period. The profit before taxation was 768 million UAH. The profit would be more, but the increase of prices of energy carriers, raw materials and other resources prevented that. From the 1st of January the price of natural gas increased by 30%. Without any economic reason the finance groups, which are monopolists on those markets, increased the prices of iron ore, ferro-alloys and ferrous scrap. For example, the prices of iron ore increased by 16-22%, prices of ferro-alloys increased by 15%, ferrous scrap – by 27%.
To cope with the increase of the prices of energy-carriers and raw materials, Ilyich Iron & Steel Works implements the program to decrease the power intensity and material capacity of the production facilities, as well as other management and technical measures, and these measures has decreased the impact of the said factors on the economics of the enterprise. For example, commissioning of the Oxygen Plant and CCM ¹ 3 at BOF Shop, construction of Pulverized Coal Injection System at Blast Furnace Shop (the total cost almost 600 million UAH), heating furnace at Rolling Mill – 1700, TVD-3 at Heat and Power Plant and other important units. The total amount of the investments into technical modernization of the production facilities during the said period was more than 350 million UAH. The money invested into the technical modernization of the production facilities increase the self-confidence of the employees and the competitiveness of JSC Ilyich Iron & Steel Works.
659 million UAH were paid as the salary to the employees of JSC Ilyich Iron & Steel Works during the first four months of 2007. The average salary of the industrial worker in April was 2,313 UAH, that is by 24.6% higher than in April 2006. The welfare and the financial aid to the retired employees of Ilyich Iron & Steel Works amounting of more than 3.5 million UAH were paid.
Besides the salary, more than 46 million UAH were paid for the program of increasing the living standards of the employees and their families (including medical treatment, cheaper food and coal) during the 4 months. 80.9 million UAH were paid to maintain kindergartens, apartment buildings and social infrastructure (resorts, holiday homes, "Chaika" sanatorium, children summer camps, palace of culture etc.
JSC Ilyich Iron & Steel Works always settles its accounts with the Budget and other statutory funds timely and in full scope. More than 429 million UAH were paid to the Budget in the said period, this was by 16.3% more than during the same period 2006. Ilyich Iron & Steel Works is one of the largest tax-payers of Ukraine, it pays 19% of all the taxes paid by ferrous metallurgy industry. Part of the taxes were directed to Mariupol city budget, it amounted 62.5 million UAH without pension fund.
The companies which are under management of Ilyich Iron & Steel Works work successfully, they are Komsomolsk Iron Mine, Uman Engineering Works, Kondratyevsk Refractory Works. During the four months they produced the goods for 162.7 million UAH, after realization of these goods the profit was 34.1 million UAH. The total amount of the goods produced by these enterprises (in comparable prices) increased by 27.1% comparing to the same period 2006.
These are the brief results of JSC Ilyich Iron & Steel Works' activity during the four months of 2007.
In the second quarter of 2007 the conditions are even more difficult. Blast Furnace ¹ 4 and BOF Converter ¹ 1 are under overhauling. As a result the production has decreased, so the income has decreased too, and the overhauling requires additional money. The suppliers of resources and services continue to increase the prices. So, from the 1st of May the price of natural gas increased by 20 UAH per 1 thousand cubic meters. In May the railway tariffs increased by 2%, and the port charges for cargo handling increased by 5%. To compensate this price increase it is required more than 4.3 million UAH in May. The demand for hot rolled coils in the world ferrous metals market slightly decreased. But the staff of Ilyich Iron & Steel Works has experience to cope with the difficult conditions, it has reserves in production and economic fields. And to achieve the required production level the staff should rely on themselves.
The results of Ilyich Iron & Steel Works' activity in the five months.
From the beginning of 2007 JSC Ilyich Iron & Steel Works has produced goods (in acting wholesale prices) for more than 7 billion 68 million UAH.
More than 5 million tons of sinter, 2 million 305 thousand tons of pig iron, 2 million 938 thousand tons of steel were produced; 2 million 494 thousand tons of rolled stock were shipped, 49 thousand tons of pipes, 2 thousand 623 pieces of cylinders and 160 thousand tons of process lime were fabricated.
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