Majority Shareholder of Polymer-Rolled Steel Producer Heavy Metal Liquidates the Company
On February 13, 2025, a bold decision was made by the majority shareholder of Heavy Metal JSC, a well-known producer of polymer-coated steel, to liquidate the company despite its strong operational success. This surprising move was reported by Metipol Group, which had a significant stake in the company. Heavy Metal had recently enjoyed a successful year, achieving its highest production and sales volumes in its entire history.
The Liquidation Decision
The announcement of the liquidation has raised eyebrows in the industry, with many questioning the rationale behind such a move after a period of robust performance. According to Metipol, the decision to liquidate is seen as "irrational and destructive" for the enterprise and its employees. The statement suggests that the company's performance did not warrant the drastic step of liquidation, leaving many to wonder about the internal dynamics leading to this decision.
On February 14, the new management team for Heavy Metal JSC was appointed. This included CEO Gusak E.M. and Executive Director Fodchuk M.B., both of whom are now tasked with managing the company's assets and overseeing its liquidation process.
The Role of Metipol Group
Despite the liquidation of Heavy Metal JSC, Metipol Group, the company that had previously played a major role in the steel plant's operations, will continue to operate in the market. Metipol has expressed its intention to keep manufacturing galvanized and polymer-coated steel products. The group remains active with its other operations, particularly through its subsidiary, Module-Ukraine, a manufacturer of galvanized and painted thin sheet metal. Metipol acquired Module-Ukraine in the fall of 2021 and continues to expand its presence in the sector.
Operational Shift and Management Disputes
The origins of the liquidation decision can be traced back to a series of management shifts and disagreements within the company. In the fall of 2020, operational control of the Heavy Metal plant was handed over to Maracortio Holdings Limited, a Cypriot company with ties to Tatiana Taruta, its ultimate beneficiary. However, in the spring of 2021, Metipol resumed control over the plant’s operations, signaling possible disagreements between Metipol and Maracortio Holdings.
This transition in management suggests that there were differing views regarding the future direction of Heavy Metal JSC, which might have influenced the shareholder’s decision to liquidate the company. Despite this, Metipol has reaffirmed its commitment to the market, and the dissolution of Heavy Metal will not affect its ongoing manufacturing operations.
Metipol’s Strong Performance in 2024
In 2024, Metipol Group achieved a noteworthy production milestone. The company produced 28.5 thousand metric tons (kt) of finished products, including a significant 7.4 kt of painted coils. Among the most popular products in the market was zinc-coated steel, accounting for nearly 15 kt of production. This success highlights Metipol's continued ability to meet demand in the galvanized and polymer-coated steel sectors, even as it navigates changes in its business structure.
Impact on the Market
The liquidation of Heavy Metal JSC has raised concerns about the future of the plant located in Pervomaisk, Mykolaiv region, which was previously managed under Metipol’s guidance. However, Metipol’s ongoing production through Module-Ukraine and its continued commitment to the steel industry are seen as a positive sign for the market.
The overall impact of the liquidation on the industry remains to be seen, but Metipol’s stable presence and its expansion into new markets suggest that the company remains poised for growth. The move to liquidate Heavy Metal JSC may simply be a reflection of internal management conflicts or a strategic decision to focus on more profitable or scalable operations.
As the steel and metal production sectors continue to evolve, Metipol’s ability to adapt to changing dynamics, including the shift in its internal structure, will play a crucial role in shaping its future in the competitive market for galvanized and polymer-coated products.
