Ukrainian Industry. Ongoing and perspective

Steel, plant, Dnieper region, Kriviy Rih, arcelor mittal, krivorozhstal

It is correctly when people say that economics completely reflects the inner arrangement of the country and tells more about this country all in all. In its turn, economics itself is based on industry as it is the main core of financial wellbeing of the whole state. That`s what about we will talk in this article.


Industry is the generous legacy from Soviet Union. We have a very serious potential of metallurgy, chemical industry, light industry, mechanical engineering, Fuel and Energy Complex, timber industry and other. Unfortunately, a large proportion of mechanisms, plants and techonolohies are obsolete, enrgetically low-efficient and non-competetive on the global market, consequently requiring big financial subsidies and as a result became unprofitable to Ukraine. Another alarming fact is absence of new-era technologies in our industry. We don`t produce microprocessors, silicon chips, compound modern techique in any case (not to be confused with Ukrainian IT-industry which feels itself good). But still we have good chances for impetuous growth of industry because of sufficient mineral resorces and qualified personnel in many branches of industry. So it`ll be an international trend to invest in Ukraine soon, I hope. But for this moment foreign investors are reasonably fearing to have tight connections with Ukraine because of political, legislative instability and hackneyed Ukrainian-Russian carelessness. I can assure, these times are passing by as new generation is ready and eager to drive their country to new horizons. So, we will now acquiant with structure of Ukrainian industry briefly and will make some conclusions from it.



Metallurgy of Ukraine is basic sector of the economy of Ukraine which provides more than 25% of industrial production of the state (96 955 500 000 hryvnia in 2005), provides about 40% of foreign exchange earnings in Ukraine and more than 10% of the state budget of Ukraine. Share of Ukraine in the world production of iron and steel, according to the International Iron and Steel Institute, is 7.4% (2007). Metallurgy of Ukraine is a company and organization of mining and metallurgical complex, which combines not only ferrous and non-ferrous metallurgy, but also processing plants, ferroalloy plants, enrichment plants, coke plants and enterprises producing metal products. 

Production of major products

Ukraine is one of the leading manufacturers of ferrous metals in the world and occupied 10th place in the world in terms of steel production in 2013. Products manufactured steelworks, is about 30% of the total industrial production and 25% of the total volume of Ukrainian export. About 80% of steel is exported, 20% is used for internal consumption. Metal Products are exported to Europe, Asia, Middle East and South America. In 2000, the industry's profitability was 26.3%. In 2007 Ukrainian steel industry generated 40% of foreign exchange earnings and 20% of GDP.


In 2011 produced: 

Non-agglomerated iron ores and concentrates – 80,600 tons 
agglomerated iron ores and concentrates – 64,600 tons 
coke from coal – 19,600 tonnes 
iron – 28,881 tons 
Steel – 17,674 tons 
semi-continuous casting – 17 837 tonnes 
finished products – 19 511 tonnes 
Flat Rolled – 9020 tons 
rods, sticks, profile Hot – 4773 tons 
Pipe – 2372 tons 
steel wire – 354 thousand tons 
prefabricated construction of iron and steel – 55.1 thousand tons 
other design teams – 511 thousand tons 
reservoirs and tanks of 300 liters – 20.6 thousand tons 
Radiators – 13.7 thousand tons 
Boilers – 304 thousand tons 
In 2013, Ukraine's steel industry produced 29.1 million tons of pig iron, 32.7 million tons of steel and 29.1 million tons of rolled products, which accounted for 76% of the production of the pre-crisis 2007. 

Mining clusters Ukraine
Mining and metallurgical complex of Ukraine has about 800 large and small companies and organizations, including 19 major steel mills and factories, 12 pipe mills, more than 20 enterprises of hardware, and more than 100 companies scrap metal recycling business localized in four clusters.

In Donetsk region 
Sea of ​​Azov (more than a third of the Ukrainian manufacturer sinter, iron, steel, rolled products, more than 12% of coke, about 6% of steel pipes) – the city of Mariupol, 3 steel plants (Mariupol Ilyich, Metallurgical Plant "Iron & Steel Works"), Coke Plant "Markohim."

typical landscape of Mariupol. Illycha Steel Plant

Donbass (about 40% of coke, 1/6 – 1/8 of cast iron, steel, rolled products, 16% of steel pipes, hardware third, 5% of the agglomerate) – Donetsk city Makeevka Yenakievo Kramators'k, Kostiantynivka 5 metallurgical plants (Makyivka metallurgical plant or MSW, Donetsk metallurgical plant or DMZ Enakiyevo Steel or YMP, and Constantine Kramatorsky smelters), Europe's largest Avdiivka Coke, and Makeevskiy Yasynivsky Coke (both in Makiyivka), "Donetskkoks" Gorlivka Coke plant Enakievskiy koksohimprom, Khartsyzk Pipe, "Silurian (company)" Druzhkovsky Hardware Plant, "EMSS" Donetsk Metal Rolling plant, Artemovskii nonferrous Metals Plant, Nikitovsky mercury plant, "Ukrtsink" Toreztverdosplav, Dokuchaevsky flyusodolomitny plant, Belokamenskoe refractory plant.

In Dnipropetrovsk region

Kryvbas (about ¾ of iron ore, 30% sinter, 1/4 – 1/5 iron, steel, rolled products, about 14% of the coke) – city Krivoy Rog, Ukraine's largest steel company – ArcelorMittal Krivoy Rog (earlier – "Kryvorizhstal") issue of iron, steel, rolled products, sinter, coke. Largest mining companies: Inguletsky, Northern, Southern, Central GOK, "Sukha Balka", "Krivbassruda", "Krivbassvzryvprom." 

Steel, plant, Dnieper region, Kriviy Rih, arcelor mittal, krivorozhstal

Dnieper (more than ½ of ferroalloys, steel pipes, all manganese ore in Ukraine, about 40% of hardware, 1/7 – 1/8 iron, steel, rolled products, more than 10% sinter and coke) – Dnepropetrovsk city, Dniprodzerzhyns'k, Nikopol, Novomoskovsk. Enterprises: NFP (Nikopol Ferroalloy Plant), Dnieper Metallurgical Plant named after Dzerzhinsky, PJSC "Evraz DMZ. Petrovsky "Bagleykoks, Dneprodzerzhinsky Coke. Pipe plants: Dnepropetrovsk factory of stainless steel pipes (IVIS STEELE), Dnieper Stainless Tube Mill (DZNT) Nizhnedneprovskiy, Dnipropetrovsk, Novomoskovsk, "Niko-Tube" and "UTiST" (Nikopol), etc. The plant "Dneprometiz." Ordzhonikidze and Marganetsk GOK. 

In Zaporozhye region
third of iron ore and ferroalloys, 11 – 12% sinter, coke, pig iron, steel, rolled – the city Zaporozhye, combine 1 (Metallurgical Plant "Zaporizhstal"). "DSS", Zaporizhzhya iron ore, "Zaporozhkoks" Zaporizhia Ferroalloys, Zaporizhia Aluminum Plant, Zaporozhye Titanium-Magnesium Works, "Ukrgrafit" Zaporozhye Steel Rolling Mill.

In Lugansk region
up to 10% sinter, iron, steel, rolled steel pipes, 13% coke and ferroalloys – Alchevsk city, combine 1 (Alchevsk Steel). Alchevsk Coke, Stakhanov Ferroalloy Plant, Lugansk Tube Plant, Pipe Plant Rubezhansky, Severodonetsky Chemical and Metallurgical Plant 

The largest owners

"Metinvest" – Rinat Akhmetov: 53,424 tonnes of agglomerated concentrate (Inguletsky, North and Central GOK), 9200 coke (Avdiivka Coke, Iron & Steel Works), 14,375 tons of steel and 9,995 tons of rolled (Mariupol. Ilyich Iron & Steel Works, Enakievo Steel), 5.77 tons of limestone (Komsomolsk Rudoupravlenie), 1305 tons of pipes (Khartsyzk Pipe, Mariupol. Ilyich), including large diameter 631 tons (Khartsyzk Pipe);


«ArcelorMittal» – Lakshmi Mittal: 24,400 tons of ore, 9600 tonnes of agglomerated concentrate (Rudoupravlenie Krivorozhstali), 2600 tons of coke (coke plant Kryvorizhstal), 9000 tons of sinter, 4 900 thousand tons of pig iron, 5,700 tons of steel, 4,900 tons of rolled products. 

"Evraz" – Alexander Katunin 

"ISD" – Sergei Taruta (former mayor of Donetsk oblast) 12% coke (Alchevskkoks), cast iron, steel, rolled steel;

"Smart Holding" – Novinsky, Vadim Vladislavovich: 10 144 tonnes of concentrate (Southern Mining), 1800 tons of agglomerate (Southern Mining);

Group "Privat" – Igor Kolomoisky 
"Interpipe" – Viktor Pinchuk 
"Estar" – Vadim Varshavsky 
"Donetskstal" – Victor Nusenkis 


In 2001, the enterprises of the industry worked 533 ths., Including: 

metallurgy 216.1 thous. 
nonferrous metallurgy 46.3 ths. 
coke industry 29.2 ths.  


If somebody read to this lines and was interested in the information above, can make a simple conclusion: almost all the metallurgy powers are concentrated at the Eastern part of Ukraine (including the region of Donbass insurgency conflict 2014) what makes whole economy of Ukraine unstable and not in the last turn provokes such bloody oppoistion between oligarchs who do not want lose big segment of actives. And that`s why there is so popular phrase in Ukraine: "Donbass is feeding whole Ukraine".


In 2014 besides war there is one more problem for metallurgy: lack of gas. Ukraine is poor and even has no monet to pay debts for Russian gas and now it can cause a lot of problems both as civilians and for industry too. Especially teking into account low efficiency of metallurgy which is the second place in the world from the bottom skipping only Tajikistan. But with this poor tendency Ukraine is trying to deal by urgent measures for increasing energy-efficiency. Arseniy Yatseniuk already has claimed that metallurgs must "…be ready for more difficult times". Gas consumption as for summer 2014 reduced on 30% at different companies and most of them begin to implement new methods of gas economy.


Light industry


Light industry is sector of the economy of Ukraine specializing in the production of consumer goods (textiles, shoes, knitwear, clothing, haberdashery). Women employed and working in this branch predominantly. On the second Sunday in June Ukraine celebrates the Day of Light Industry. This type of industry has old and wealthy history. In times of Russian Empire many scattered here and there little manufactories operated at the territory of modern Ukraine. But real frowth of significance and volumes of industry observed in beginning of XX century in times of Soviet Union. Ukraine has a very fruitful soil for cultivation of flax and subsequently ease extracting raw from industrial crops.


From 1990 to 2000 the production speed of light industry of Ukraine decreased by 68%. In the period of 1990-2006. share of light industry in total industrial production declined from 10.8% to 1.2%. According to the 2006 export of textiles and textile products reached 915.3 million dollars (2.4% of the total), import – 1 365.5 (3% of the total). Leaders of light manufactured goods per capita in 2001 – Zhytomyr, Transcarpathian, Ivano-Frankivsk, Sumy and Chernihiv regions where production was more than 60 Hrn. / Pers.; and in Crimea, Donetsk, Kirovograd, Odessa, Rivne, Khmelnytsky region production was less than 15 Rs. / pers. 

Light manufactured goods (in 2006) \:

linen fabrics – 43 million m ²; 
cotton fabric – 2,000,000 m ²; 
woolen fabric – 9,000,000 m ²; 
jerseys – 31 million pieces; 
pantyhose-socks products – 54 million pairs; 
carpets and rugs – 6.2 million m ². 

In 2008 the companies of producing clothes cut production by 7.9%. The main reason for decline in light industry is unequal conditions for the Ukrainian market participants and importers. Volumes of production of light industry in 2008 decreased by 3.4%, mainly the production of clothing; a slight increase was observed only in footwear industry. According to the State Statistics Committee, on the 22-41% reduction in the production of jackets, skirts, pants and coats, to 9% of the production of men's suits. Clothing imports in January-November 2008, on the contrary, increased by more than 110% compared to 2007. Imports from developed countries to Ukraine minimal example of France, according to official data, during 11 months of 2008 brought about 668 women's knitted sweaters and T-shirts, Denmark – 148 units (of the country imported 1.643 million 336 such products). The bulk of production comes from Asia. 


Light Industry` structure 

Textile – 1st place in the production; 
Sewing – 2nd place in the production; 
Shoe – the third largest producer; 
Tanning – 4th place in the production; 
Fur – 5th place in the production. 

The largest centers of industries (depending on the number of employees): 

Textile – almost all the regional centers; 
Cotton – Kherson, Ternopil, Donetsk, Nikopol, Novovolinsk; 
Linen – Rivne and Zhytomyr; 
Wool – Chernihiv, Sumy, Glukhov, Bohuslav, Lubna; 
silk – Cherkasy, Lutsk, Kiev, Lisicansk; 
Knitting – Kharkiv, Lviv, Chernivtsi, Luhansk, Mykolaiv. 
Sewing – Kiev, Dnepropetrovsk, Vinnitsa, Lviv, Kharkiv. 
Tanning – Berdichev, Lvov, Kiev, Vasilkov, Voznesensk. 
Fur – Kharkiv, Balta, Jmerinka, Krasnohrad, Tismenitsya. 
Shoe – Kiev, Kharkiv, Lviv, Dnipropetrovsk, Luhansk, Zhytomyr, Zaporozhye.

And in addition to bold statistics I want to add some information from first person about Light industry and what goods og it I really wear and use in casual life, and how I see the results of the work and possible ways to improve the functionality of this branch of economy. First of all, I want to notice that textile industry (clothes production, sewing) in the early 2000-s tended to spread into at the expense of kindergartens and other state facilities became unclaimed in the post-Soviet period. Kindergartens often had been modernizing to small sewing workshops to trade at local markets. Because of very complicated and barely working legislation this method almost supplanted big sewing fabrics. I have a little sewing workshop at the ground floor of my condominium (Kharkov). Earlier there was bakery 🙂 The pattern of business and volume of production of such "companies" is unknown authentically. But I think they worked not only for Ukrainian but for Russian market to. That`s why many of such manufactories experiencing a strong crisis nowadays because of modern political situation in Ukrainian state.


Nevertheless we have some big players on the market of shoes in Ukraine. Personally I like shoes from "Mida" company from Zaporozhye. As for furs and haberdashery we have decend fabricators here in Kharkov.


Сhemical industry

Chemical industry in Ukraine is a complex industry that provides all sectors of the economy of Ukraine chemical process materials and manufactures consumer goods. This is one of the major components of the economy of Ukraine. 

1) impact on scientific and technological progress of other industries, 

2) is able to create new materials, 

3) produces consumer goods. 


The raw material base

1) coal Donetsk and Lviv-Volyn basin 

2) oil basins of Ukraine, 

3) rock salt and potassium salt, 

4) phosphorus, sulfur, chalk and limestone. 



1) Shahterskoe-chemical, 

2) Basic chemistry, 

3) Chemistry of Organic Synthesis (petrochemicals, polymers). 

Mining chemical
Companies in this industry are concentrated areas of mineral extraction. Sulfur mined in New Rozdol, Nemiroff (Lviv region), table salt – Slavyansk, Donetsk (Donetsk region), in the territory of the Gulf of Siwash (ARC), potassium salt – in Kalush (Ivano-Frankivsk region), Stebnik (Lviv region, not in use since 1983 after ecological catastrophe). 

Kalush, Ukraine
Kalish is the resource and leisure center of Western Ukraine


Fertilizer production
Nitrogen fertilizer taken in the areas where coking plants (Severodonetsk Dniprodzerzhyns'k, Zaporozhye, Gorlivka), in the areas of gas pipelines and nearness (Rivne, Cherkasy, Odesa). Phosphate fertilizers are produced on the basis of imported raw materials in areas with / x production (Odessa, Vinnitsa), as well as in the field of production of sulfuric acid (Kostiantynivka, Sumy) and centers of advanced metallurgy (Mariupol). Production of sulfuric acid is in the areas of consumption (Severodonetsk Kostiantynivka, Sumy, Rivne, and New Rozdil Dniprodzerzhyns'k). Soda production taken in the mining areas of salt (Slavonic, Lisicansk) and brine (Krasnoperecopsk Armenian). 

Coke industry 

By-product coke industry is an important link in the chain coal-coke-metal. Raw material for coke industry is coking coal, widely produced in the Donetsk and Lugansk regions. Byproducts of coke production, including phenol, are widely used in the chemical industry. 

Organic synthesis

Centers of organic synthesis – Severodonetsk, Lisichansk Gorlivka, Zaporozhye, Dniprodzerzhyns'k. Polymer production is based on the use of products from the oil, gas and coking industries (Donetsk, Severodonetsk, Zaporozhye, Lutsk – manufacture of synthetic resins and plastics, Kiev, Severodonetsk, Chernihiv and Cherkasy – manufacture of synthetic fibers and filaments). Manufacture of synthetic adhesives performed at the pilot plant at scientific institutes Kiev and Dnepropetrovsk also develop the production of glue in Kharkov. 

The main centers of the paint industry – Dnipropetrovsk, Lviv, Odessa, Kharkiv, Nizhin, Korosten, Borislav, Rubezhnoye Armiansk, manufacture of dyes – Krasnoperekopsk. 

All large speed dials manufacture of detergents and chemical farmatseptika Ukraine. These industries depend on scientific institutions. Centers industries – Severodonetsk, Donetsk, Dnepropetrovsk, Kiev, Zaporozhye, Odessa, Lubna, Uman, Lviv, Ternopil, and Lisicansk Rubezhnoye. 

Largest sector 
PJSC "Severodonetsk Azot Association" (flagship) 
Odessa Port "HMO" 
OJSC "AK" Svema "" 
Gorlivka concern "Styrene" 
Avdiivka Coke 
Markohim in the "Iron & Steel Works" 
JSC "Chernigov khimvolokno" 
Of "Fiberglass" 
Cherkassy "Nitrogen" 
Concern "Styrene" 
By far the largest manufacturer of chemical products is a chemical holding OSTCHEM, which includes four chemical enterprises in Ukraine, in particular Cherkassky "Nitrogen" Concern "Styrene" Severodonetskoye association Nitrogen and "Rovnoazot", as well as other businesses around the world.


And again, as you can see, the main potential and resources are based at the East of Ukraine, where we have the war now and this will be make a serious impact to Ukrainian economy. And this is also a reason for not allowing the region to make independent policy. 


But what we have at the West of the country? Western Ukraine is leader in Timber and Wood industry as of vast resources. If we regard Mechanical engineering, leaders are South-Eastern regions in producing of ships, tractors, military machinery, trucks etc. But we also have big center of buses and city elctrotransport-production in Lvov (worldwide known LAZ) and Lutsk Automobile Plant (LuAZ) which have broad range of international orders. 

laz, electrotransport, trolleybus, lviv automobile plant
Lvov automobile plant`s production at Kharkovan streets during Euro-2012

As for the Energetic sector and resources, here is apparent parity and balance. Ukraine has rich deposits of oil and gas but still with our inefficiency in Energetic complex, we don`t extract enough resources for our industry. But it`s real in near future. We have a lot of opportunities to extract more, save more and develop new methods of energy obtaining (such as alternative energy).


As it seen from above, Ukrainians has a developed industry and a great potential for improvement of all indicators. But now on the way of transforming our country in the world industrial monster are standing the same reasons as they stayed 23 years ago: lack of management and innovations, bad and non-abiding legislation, red level of corruption, bureaucracy, conservative-minded leadership of country and industrial companies, outer factors. Hundreds of them. But I concerned that our problems are in our society. Mythical EU, America or Russia aren`t guilty. We will try to discover the intrinsic weaknesses of our country laying in field of morality, mentatilty and culture of Ukraine. They treated in corresponding categories of site.


  1. Guys, what the hell is category "Euromaidan/Civil war"?! You don't know how to use google to find terrabytes of photos and evidence of Russian troops in Donbass? What a shame! There is no civil war in Ukraine, there is Russian agression against Ukraine, which killed already 10 thousand people. 


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