Dnipro Metallurgical Plant Expands Business to Boost Financial Growth
Dnipro Metallurgical Plant, one of Ukraine's largest metallurgical enterprises and part of the DCH Steel division of the DCH Group, has announced a strategic expansion of its business services. As part of the move, the plant will now offer steel structure manufacturing, repair services, and laboratory testing to third-party companies. These new services will create additional revenue streams for DMZ and strengthen its position in the market.
Laboratory Services for Third-Party Companies
A key part of the expansion is the plant’s Central Plant Laboratory, which has been certified for various testing and measurement services. The CPL includes several specialized laboratories, such as a chemical laboratory, a mechanical testing laboratory, and a coke production laboratory. These labs are equipped with advanced tools and technologies to provide high-quality analytical services.
The laboratory is equipped to:
• Determine the composition of iron and steel using spectral analysis.
• Test the mechanical properties of rolled products.
• Assess the quality of coal products, ferroalloys, refractories, lubricants, and other industrial materials.
In December and January, the chemical laboratory successfully completed its first orders from two local enterprises in Dnipro, focusing on determining the chemical composition of various materials. The laboratory has since provided comprehensive test reports, adding value to the services offered by the plant.
Metal Structure Manufacturing & Repairs
In addition to laboratory services, DMZ is also focusing on expanding its capabilities in metal structure manufacturing and repairs through its Specialized Metallurgical Equipment Repair Shop (SMERS). With skilled personnel and modern equipment, the shop now produces a variety of complex metal structures. These include:
• Building trusses
• Spatial columns
• Crane beams
• Metal platforms
• Stairs
• Large-diameter pipelines
• Non-standard tanks
The shop’s notable project last year was producing a unique skip and cage for the Yubileyna mine, part of a collaboration with the Sukha Balka mine. Moving forward, DMZ plans to expand its customer base and further enhance its capabilities in providing complex metallurgical solutions for various industries.
Plans for Expansion and Customer Outreach
DMZ’s plans to expand its business offerings come at a time when it is working on growing its external client base. The company is set to release more information about its services, certifications, and cooperation opportunities. This will allow potential partners to explore opportunities for collaboration with DMZ, particularly in the areas of steel manufacturing and specialized laboratory services.
Production Decline and Adjustments in 2024
Despite the business expansion, DMZ faced challenges in 2024. According to reports from GMK Center, rolled steel production decreased by 59.4% year-on-year, totaling 42.9 thousand metric tons. Additionally, coke production saw a slight decline of 1.2% year-on-year, amounting to 289.1 thousand metric tons. However, the company’s expansion into service-based offerings, including steel structure repairs and laboratory testing, is a move aimed at stabilizing its financial performance and diversifying its revenue sources.
DMZ’s Position in the Ukrainian Steel Industry
Dnipro Metallurgical Plant remains a key player in Ukraine’s metallurgical sector. It is known for producing a wide variety of channels and angles, holding the title of the largest producer of special profiles in the country. DMZ is particularly significant to the machine-building and mining industries, as it is the only domestic producer of special profiles designed specifically for these sectors.
The expansion of services like metal structure manufacturing, repair work, and laboratory testing demonstrates DMZ’s agility and commitment to adapting to market demands. By providing these services, the plant aims to secure a more sustainable and diversified future.
As the plant continues to evolve, its ability to provide high-quality products and services to third-party clients positions it for further growth, even in the face of market challenges.
