Metallurgy is literally the heart of Ukraine's industrial sector providing a substantial part of national GDP and exports. But to date, this industry has accumulated numerous problems, reducing its competitiveness in the world market. While enjoying a number of advantages, such as large industrial facilities, access to raw materials and favourable geographical position steel companies continuously face new challenges, particularly evident in the crisis.
Heavy dependence on external factors (frequent changes in prices for raw materials and metal products, the introduction of protectionist measures in other countries) is one of the biggest threats. And to minimize it companies need to act quick and resolve their structural problems, such undergo large-scale reconstruction of industrial facilities, which, in turn, requires a substantial investment.
Thus, today, many steelmakers are in search of funding, while trying to reduce debt and tax burden, get the state to refund VAT and dealing with the problem of production cost increase factors (such as gas, electricity, transportation, wages). Then there is also the challenge of active state involvement in economic activities of these companies, the non-compliance with relevant legislation pertaining to the metalworking industry and so much more.