Only upgrade, transition to modern technology, capital concentration and the integration of production will let Ukrainian metallurgy remain competitive in the global market in the medium term, the secretary of the National Security and Defense Council of Ukraine Andriy Kluyiev said, commenting on the return of our country’s positions in the ranking of the world's steel producers in June, ForUm learned from the NSDCU press service.

As reported, on the results of work of metallurgical enterprises in June 2012, Ukraine increased steel production, rising from 10th to 9th place in the ranking of 62 countries - the world's major manufacturers of these products, compiled by the World Steel Association (WSA).

Kluyiev noted that Ukraine is partially returns its position in the global steel market, lost due to the work during the first months of this year. However, according to him, it is too early to rejoice, since the registered growth in the domestic steel industry in the first year half is rather small. "Accordingly, the question now arises how to accelerate the growth of metallurgy and other industries. Therefore, the relevant agencies are implementing a number of programs to enhance the construction industry, to develop infrastructure projects, to increase the defense order, to activate projects in the aviation and shipbuilding and in the number of other industries. Moreover, we should welcome and strongly support the implementation of large-scale private investment projects," the NSDCU secretary said.

He recalled that the medium-term global steel industry forecasts talk about the availability of a significant surplus production capacity in future, so that Ukraine should make great efforts to remain competitive. High energy prices do not inspire, so only the new technologies can provide good prospects for development, Kluyiev said.

As an example, he cited putting into operation the largest in Eastern Europe Dniprostal electro steel making plant in the Dnipropetrovsk region and the modernization of a number of related businesses. According to him, after the company gets into top gear, the domestic tube plants will be provided with the domestic high-quality tubing stock, so there will be no need in its import.

"This is a striking example not only of import substitution but also of the effective implementation of the advantages of vertical integration," the secretary of the NSDC said. He stressed that the trend of the last ten years to strengthen the global concentration in the metallurgical industry dictate the conditions to maintain the competitiveness of the domestic steel industry.


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