Economic conditions for development of ironworks

Secondly, Ukraine has sufficient labour manpower and skilled workers, of which 429 thousand are employed in enterprises of this industry.

Ukraine’s transport infrastructure is a well-developed one, which makes it possible to deliver raw materials to the manufacturer and transport finished products to the consumer. There are both a well-developed dense network of paved roads and a network of railway lines which is especially dense in the industrial Donbas and the Dnieper region.

An important factor to mention is that the share of railway tracks belonging to companies and enterprises in the Dnieper region and Donets Basin is much bigger than that of the public railway lines. The reason for this is the significant amounts of cargo handling at metallurgical enterprises. The Donbas – Kryvyi Rih railway line is unique to Ukraine as it is a three-track railway. Coking coal is carried in one direction, the iron ore concentrate is carried backwards.

Scientific and technological progress also has a great impact on the development of ferrous metallurgy. New technological advances ensure improvement of the quality of industrial products and the labour efficiency. Scientific and technological progress also helps to extend the finished sections range (there are over 3000 types of rolled sections whereas Ukraine produces only 200-250 items).

The most common form of manufacturing iron and steel is an integrated works.

Ukraine has 13 iron and steel integrated works (Ukraine ranks highest in the world in terms of concentration of ferrous metallurgy manufacturers: 98% of cast iron and 97% of steel are produced in the enterprises with the annual smelting of over 1 million tonnes) They all are among the largest industrial enterprises and classified as the metallurgical energy and chemical complexes by the character of internal technological ties

The structure of steel production technology in Ukraine is broken down as follows: 44.3% – open hearth production, 3.5% – electrical steel - 52.2% – oxygen steelmaking.

In ferrous metallurgy there can be distinguished enterprises with a full production cycle and those specialising in either cast iron and steel smelting, or only in steel smelting and rolling products.

Enterprises that do not include cast iron production are in metal manufacturing industry.

A special place is taken by companies that produce ferroalloys. There is a separately distinguished “small metallurgy”. It is organised by large machine building enterprises and specialises in steel smelting and rolling.

Ukraine's steel enterprises have their own specific principles of geographical location.

The first principle is availability of own coking coal and imported raw materials. Iron and steel works in Donbas are subject to this principle.

The second principle is availability of own raw materials and imported coal. Such integrated works include Kryvyi Rih, where there is Ukraine’s largest metallurgical plant of “Krivorizhstal” with capacity of 6.7 million tonnes.

Such metal plants as those in Kharkiv, Dnipropetrovsk, Dniprodzerzhynsk are located in the proximity of fresh water basins and metal consumers, between raw materials and fuel. This location provides for a better territorial organisation of ferrous metals production.

Another widespread principle of the steel industry location in developed countries is proximity to seaports. In Ukraine, plants in Mariupol (“Azovstal” and ironworks named after Illich) are located under this principle and receive iron ore from Kryvyi Rih and Kerch, and coking coal from Donbas.

Thus, there are now 3 major steel producing areas formed in Ukraine: the Dnieper region, Donetsk, the Azov region.

The Dnieper metallurgical region produces half of the cast iron and steel. 14 of the 32 large enterprises of Ukraine are based there. This metallurgical area uses its own huge reserves of raw materials: iron and manganese ores. The coking coal is brought here from Donbas and fluxing limestone – from the Crimea.

In the Dnieper region there have been formed such large industrial hubs as Dnipropetrovsk, Zaporizhia and Kryvyi Rig.

The Donetsk metallurgical area gives one third of steel products in Ukraine. It combines large industrial hubs and centres which appeared around deposits of coking coal and fluxing limestone. Iron and manganese ores are imported here from the Dnieper region. Donetsk metallurgical area includes 13 ironworks, powerful coke-chemical enterprises producing over 50% of coke in Ukraine. Donetsk, Makiivka, Alchevsk, Khartsyzk have two ironworks each, Yenakiieve, Kramatorsk, Kostyantyniv, Luhansk and Almazne have one ironworks each. They produce about 50% of cast iron and about 33% of metal products in Ukraine. In Donbas there have been formed such large industrial hubs as: Donetsk-Makiivka, Yenakiieve, Alchevsk-Almaznytsk. Apart from hubs, there are separate industrial centres in this area: Kramatorsk Stakhanov, Khartsyzsk.

The Azov area combines powerful Mariupol metallurgical plants. It was formed at the intersection of transport routes required for importing raw materials here. Iron and manganese ores are brought here from the Dnieper region, coking coal and fluxing limestone - from Donbas, iron ore- from Kerch deposits.

4. Modern development. Location of individual ironworks.

5. Problems and outlooks on the industry development.

Conclusions