Donetsk Electrometallurgical Plant




Donetsk Electrometallurgical Plant (named ISTIL (Ukraine) until 2009) was created on the basis of Donetsk Metallurgical Plant’s electric furnace, blooming mill and scrap shop following its restructuring. Funds invested by Istil Group allowed the plant to implement modern technologies of smelting, out-of-furnace treatment and continuous casting.


Launch of the ladle furnace, concaster, electric furnace equipped with the Danark system and fume-cleaning, and a Danieli-produced vacuum degasser.


For the first time in Donbass’s history, the plant smelted and produced out-of-furnace treatment, continuous casting and rolling of stainless steel.


The electric furnace with Danark system smelts one-millionth tonne of steel since its launch.


The plant is granted a loan by the European Bank of Reconstruction and Development (EBRD) to develop its production facilities and improve power cost efficiency.


The plant installs a powerful energy converter (87 MW +20% replacing the old 50-MW one) which enables the plant to produce more steel in less time. The plant’s capacity is up to 70-75,000 tonnes of steel a month.


The plant employs the resource planning and control information system on the basis of mySAP ERP system.


The plant commissions an oxygen station to provide for the enterprise’s needs in air separation products (oxygen, nitrogen and argon). The line of furnaces for improved heat treatment are launched. The plant implements the method of rolling large-diameter billets.


Russian-based Estar Group acquires the plant.


Istil (Ukraine) is renamed as Donetsk Electrometallurgical Plant.

2009 -2010

Due to the global economic crisis, the plant’s owner is facing financial difficulties. The plant had to halt production on several occasions, its employees were out on forced leave. Thanks to Mechel Group’s support, in April 2010 the plant resumed production and reached its capacity of 80-90,000 tonnes of steel a month. The blooming mill producing hot-rolled circles, including those made of special steel grades for high-tech industries, was re-launched after a halt. The plant’s investment programs were resumed, and over 1,000 new jobs created.


Over a year of strategic partnership with Mechel, the plant produced a million tonnes of steel. The plant commissioned test laboratories equipped with modern technologies for quality control of its steel products.


In December, DEMZ AO becomes part of Mechel Group.