2. “Metinvest-SMC”: Vertical Integration and Strategic Adaptation
2.1. Production Base and Response to Asset Loss
Company “Metinvest-SMC” occupies a unique position in the market as the distribution arm of Ukraine’s largest mining and metallurgical holding. The loss of control over Mariupol assets was a heavy blow, but the company demonstrated high adaptability by transferring production load to the capacities of “Kametstal” and “Zaporizhstal”. A strategic step was the development of new product types at the 400/200 mill of the “Kametstal” plant. In particular, production of rebar with diameters of 9.5 mm and 11.5 mm was established.
This technical solution has deep economic subtext. In conditions of high inflation and logistics cost increases, the use of intermediate diameter rebar allows construction companies to optimize the metal intensity of projects, reducing the weight of structures without losing their load-bearing capacity. This is an example of how a production giant responds to market demands for resource savings.
2.2. Import Strategy and Diversification
Not limiting itself to domestic production, “Metinvest-SMC” activated import channels. A demonstrative case is the establishment of thick plate supplies and specific steel grades from the group’s Italian asset — the Ferriera Valsider plant. The first batches of about 1,000 tons arrived at the Lviv distribution center, emphasizing the role of Western Ukraine as a new logistics hub. This allowed the company to fill deficit positions (20-50 mm plate), critically important for mechanical engineering and heavy industry restoration, which were previously produced at “Azovstal”.
2.3. Product Portfolio and Pricing
The rebar product range of “Metinvest-SMC” is a market benchmark. The company offers:
- Rebar classes: A400/A500 (measured and unmeasured length), as well as smooth rebar class A240.
- Pricing policy: As of late 2025, the price for 12 mm rebar (measured) was approximately 35,000 UAH/ton, which is indicative for the entire market. The use of an online calculator allows clients to instantly convert needs from meters to tons, ensuring pricing transparency.
- Additional services: In addition to sales, the company offers cutting services, batch grouping and railway delivery, using its own fleet of 1,600 railcars from “Metinvest-Shipping”.
2.4. Social Responsibility and Infrastructure Restoration
The company is actively integrated into defense and reconstruction processes. An example is the supply of rolled metal for the production of mobile buggies for the Armed Forces of Ukraine. In addition, the group maintains positions as one of the largest taxpayers (over 15.2 billion UAH for 9 months of 2024) and implements veteran reintegration programs, which is an important factor in reputational capital in the market.
3. “AV metal group”: Scaling Retail Network and Production
3.1. Hybrid Business Model
“AV metal group” positions itself not just as a trader, but as a production and trading company with the widest geographical presence in Ukraine. The key competitive advantage is a developed network of metal bases covering virtually all district centers of controlled territory. This allows the company to work in the B2C (retail) segment at a level unattainable for competitors focused exclusively on wholesale.
3.2. Production Cluster
Unlike classic traders, “AV metal group” invested significant funds in creating its own production capacities. The company independently produces:
- Cold-deformed rebar: This allows meeting reinforcement needs for low-rise construction and production of reinforced concrete products.
- Meshes and fences: Masonry mesh, sectional fences and fastening systems.
- Roofing materials: Metal tiles, profiled sheets and siding, making the company a comprehensive supplier for private housing construction.
3.3. Logistics and Sales Digitalization
The company has implemented a split logistics model. For transporting heavy black metal (rebar, beams), its own freight transport and partnership with SAT carrier are used, while less bulky cargo (stainless steel, fasteners) can be delivered through “Nova Poshta”.
The digital transformation of “AV metal group” is manifested in a full-fledged online store with “1-click” purchase capability. This solution, typical for e-commerce, is innovative for the conservative metal rolling market. The client has the ability to choose a specific metal base for self-pickup, see current stock and prices, which greatly simplifies the procurement process for contractors and private developers.
3.4. Humanitarian Initiatives
“AV metal group” takes an active part in restoring infrastructure destroyed by war. The company provides materials for repairing roofs of schools and hospitals in de-occupied regions of Kyiv region (villages of Kukhari, Sukachi) and medical facilities in Irpin. This activity not only performs a social function but also strengthens ties with local communities and municipalities.