UK-based plantmaker Primetals Technologies has announced that it has signed a letter of intent with the Ukrainian government to help the country rebuild its steel industry.
The company will contribute to a feasibility study, which other major players will also be a part of, that is planned to be completed next year. The collaboration in question will focus on implementing green iron and steel projects, creating the full green value chain that will include agglomeration, ironmaking, steelmaking and supply of raw materials such as hydrogen.
According to Primetals, $20-40 billion will be needed to establish a green iron and steel value chain in Ukraine. Such investments consist of iron ore beneficiation and pelletizing plants, clean power and hydrogen production, green ironmaking and steelmaking plants and relevant infrastructure.
“We are very pleased to support the Ukrainian government for the recovery of the Ukrainian steel industry. The steel plants in Ukraine have long played an important role on a European and a global level, and the iron and steel sector is central to Ukraine’s economy. With the projected investments targeting the entire value chain, Ukraine is poised to become a global hub for green ironmaking and steelmaking,” Dr. Alexander Fleischanderl, head of green steel and senior vice president at Primetals Technologies, stated.
Reports had indicated that even before the Russia’s invasion of Ukraine major players were planning to improve the steel industry of Ukraine, which has an important role in supporting European and global supply chains thanks to its geopolitical position.