FERREXPO
STEELING AGAINST THE PANDEMIC
FERREXPO
STEELING WE LEARN HOW FERREXPO HAS RESPONDED TO COVID & IS ALREADY LOOKING BEYOND IT.
AGAINST THE PANDEMIC PROJECT MANAGED BY: TREVOR GRETSINGER
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Ferrexpo is the world’s third-largest iron ore pellet Exporter, supplying high-quality pellets to the global steel industry. “All commodity businesses are cyclical. We’ve focused particularly hard in the last five years to develop a customer portfolio which can support our business throughout the cycle,” explains Jim North, Acting CEO of Ferrexpo. “We have created long term relationships with crisis resistant customers who are looking for reliable suppliers with consistent quality to support their steel production. Our sales book is as good as you will find at any of the world’s major iron ore miners.”
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he company’s mining operations are solely Ukraine-based; however, we have marketing offices all over the world located close to our key customers. “We produce high-quality blast furnace pellets, with low levels of alumina and phosphorous, which makes our product highly sought after,” North points out. “We’ve been dipping our toe in the water in the DRI [Direct Reduced Iron] market and have delivered several trial cargoes to key customers in this market segment, and we will continue to expand our DR pellet sales into markets such as the US, Middle East and South-East Asia.” Ferrexpo’s strategy is to grow and expand its footprint by positioning itself for growth and optimising its operations to ensure disciplined governance. The company’s strategy is built on the goal of producing and exporting high-quality pellets to premium steel mills around the world, targeting businesses that produce sophisticated steel products. Ferrexpo intends to be a lowcost, efficient producer with a
reliable logistics infrastructure. By positioning themselves as a low-cost producer with a continually improving output quality, Ferrexpo plans to develop a strong customer portfolio and maintain a social licence to operate. The company is setting out to optimise its operations by developing its resource base and logistics capabilities while acting as an efficient producer and continually training and developing its employees. This strategy is built on a foundation of operating discipline that requires Ferrexpo to maintain high standards of corporate governance, evaluate relevant investment opportunities and maintain appropriate credit metrics and sufficient financial liquidity. The business is also committed to developing the Group’s significant resource base, improving the quality of the Group’s pellets, maintaining a competitive cost of production, and expanding the Group’s logistics capabilities while opening and developing new markets and customers.
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Who we are: Our company’s name is VIG Industriemaschinen GmbH.
VIG is the initial abbreviation of three words: Vorsatz (Target), Ingeneering (Engineering), Geschwindigkeit (Speed). These three words define all of our activities. The fast movement to targets based on the best engineering achievements. The basis of our activity is cooperation with major customers of the mechanical engineering, metallurgy, mining, cement and chemical industries. The quality status is “Made in Germany”. The main target of our activity is to identify problematic nodes and mechanisms in various production processes, followed by engineering research, the correct selection and replacement of obsolete equipment, improving their energy efficiency and performance. After studying the problematic unit or assembly, we take measurements of seats, accurate load calculations and the principle of operation of the equipment according to
the drawings of the customer or at the installation site. Afterwards, we create project documentation and offer a replacement based on three main principles: reliability, energy efficiency, ease of maintenance. Our customers: Ferrexpo, Metinvest, Metalloinvest, DTEK, NLMK, EVRAZ, KZRK, NKMZ, Tagmet, Severstal, AMT, NRG, Arcelor, Maxam group, Ilim group and many others. 30 years of the development on the market, more than 50
satisfied customers, successful projects.
500+
History: The company was founded in the early 1990s, and from the very beginning got involved in the design and supply of the high-technology non-destructive testing equipment for pipe plants and steel plants. The software, sensors, industrial computers – the non-destructive testing solution was supplied as a completely autonomous and independent system. But the company faced the necessity
to connect the software and quality control of the production with the actuating mechanisms of the plant, to make an instant impact in the production process. The landmark project in 1995 was a blast furnace automation system for one of EVRAZ steel plants. The development strategy of the company was to expand the range of activities and to increase the scope of design. In order to widen the scope and scale of the engineering solutions, the end of 1990s, the company developed relationships with VEM, Siemens, Emotron, Schneider, Emerson, Beckhoff, Danfoss and other electric and electronic brands to achieve the symbiosis between automation and drive. But something important was missing. Just electrical soft- and hardware could not make up the complete solution. Mechanics was missing. So, the beginning of the millennium was marked by the start of the huge collaboration between VIG company and Brevini Power Transmission SpA (now part of Dana Inc). We received the best mechanical product to make the complete drive solution.
The last step was to involve the manufacturers of metal structures and parts for our end products, with the endgoal of having the turnkey machine supply, developed by our designers. To date, a complete production cycle of components and assembly of our drives and machines has been organized in several key logistics centres near our main customers. For the production of the most sophisticated and complicated components, we work with a wide range of European and US manufacturers. These developments allowed us to become a high-quality OEM with a
wide portfolio of products. Nowadays, our portfolio includes successfully implemented solutions and detailed projects for the modernization of kilns, main conveyors, powerful pumps (slurry, feed, network), compressors, mining equipment, mine shaft machines, skip hoists, car dumpers, cone crushers, screens centrifuges, mixers, pelletizers and many other machines. It is possible to carry out a turnkey project with installation, commissioning, connection and start-up, as well as obtaining all the necessary permissions from the supervising bodies.
VIG Industriemaschinen GmbH Potsdamer Straße 92, 10785 Berlin, Deutschland Tel. +49 30 516 510 68 Fax. +49 30 278 916 99 Email: info@vig-handels.deinfo@vig-im.de
www.vig-im.de
FERREXPO
Jim North Acting CEO, Ferrexpo
BUILDING THE BRAND
“When I have had discussions about our business, people have often said ‘you are those Ukrainian miners” says North. It’s true that we have a strong Ukrainian heritage but we are now a truly global organisation, with a highly skilled team operating in various locations across the world that shares our vision to be the world’s leading supplier of pellets to the global steel industry.” “One of the other challenges we’ve faced when introducing our company to new suppliers is to assure them that Ukraine does have world-class businesses. We’ve transformed our business into a modern, efficient world-class operation since listing on the London
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stock exchange in 2007. We buy from major equipment suppliers all over the world, and we are quick to deploy any new technology or innovation into our operations.” North makes clear that Ferrexpo is far from being the exception, but is emblematic of the transformation and development taking place within Ukraine. “Ukraine is transforming and going through significant change. The government is in the process of a major reform of legislation, the way they work and developing standards comparable with anywhere else in the world,” North says. “We’re regularly talking with the government about modernising legislation
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“WE’RE REGULARLY TALKING WITH THE GOVERNMENT ABOUT MODERNISING LEGISLATION TO SUPPORT OUR VISION TO DEPLOY WORLD-CLASS TECHNOLOGY.”
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to support our vision to deploy world-class technology.”
PROTECTING THE WORKFORCE
While 2019 had posed a number of challenges for Ferrexpo, the company was able to report a strong set of financial results for the year alongside progress on corporate governance matters. Ferrexpo’s operations continued to perform strongly throughout the year while increasing the production of high quality 65% Fe pellets from
its own ore by 3% to 10.1 million tonnes while sales volumes increased to 10.3 million tonnes. Despite lower demand from some steel mills compared to 2018, the Group signed new long-term contracts for supply into Germany and Taiwan as well as renewing a longterm contract for supply into Japan. Last year was a period of geographic diversification for Ferrexpo’s sales portfolio, allowing the Group to maintain consistent supply to the market
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ZEPPELIN UKRAINE Since 1996, Zeppelin supplies legendary Caterpillar equipment to Ukraine. A wide range of products offered by the company helps customers to solve tasks of any complexity - from excavation to power of the constructed object and marine equipment. Together with Cat® equipment, used in construction, mining, oil, and gas industries, Zeppelin offers a wide range of marine, industrial diesel, and natural gas engines, Cat, MAK™, and EMD systems. Zeppelin Ukraine provides professional service at a high level in the shortest possible time and is improving quality in a continuous process. Genuine spare parts top service fill throughout the warehouse’s network in the country allows providing an uninterrupted supply. Zeppelin Ukraine installed the component rebuild capabilities (CRC) to support our customer equipment high uptime, lower operational costs, and reduce greenhouse emissions through the supply chain network. The company’s commitment is to continually develop repair capabilities and introduce technologies to meet future market needs. Sustainability is one of the core values of Zeppelin and Caterpillar. We strive to balance environmental management, social responsibility, and economic growth - and help our business partners do the same. Caterpillar is focused on energy and emissions reduction in our own business, and helping customers decrease their carbon footprints through machinery and power solutions that contribute to lowering greenhouse gas emissions. Supported by our Enterprise Technology Strategy, research and development focus areas include high-efficiency energy conversion and electrification, working to increase power density, expand the use of alternative fuels, maximize efficiency of power systems and introduce more electrification into our product lines. And Zeppelin Ukraine supports forward-looking technologies to meet our business partners’ needs. Caterpillar has developed a range of offerings to reduce emissions. This includes industry-leading engine offerings to comply with emission regulations such as Tier 4 / EU stage V, hybrid solutions, and full electric systems that help customers around the world meet their business goals for power utilization and owning and operating costs. EMISSIONS & FUEL REDUCTION Caterpillar continues to improve fuel economy across the product line. Cat engines with aftertreatment have nearly 170 million hours of proven field performance. One of the latest benefits has come from Caterpillar’s mining truck line where optimized fuel maps have improved fuel economy by 6% and lower power settings on many models offer the ability to optimize fuel consumption to production requirements. Fuel reduction efficiency also comes from higher utilization. For example, autonomous technology solutions substantially improve efficiency, productivity and safety. One of the main factors affecting the extraction of minerals and carbon dioxide emissions is the fleet. With Cat® MineStar ™ Command, Caterpillar has transported 2 billion tons with more than 275 autonomous trucks in operation. Cat MineStar Command reduces the number of the fleet needed to complete production tasks, and thus the amount of emissions is further reduced. ALTERNATIVE FUELS Alternative fuel solutions such as Cat Dynamic Gas BlendingTM (DGBTM) replaces diesel with LNG whenever possible to lower energy costs. Engine conversions can be done through the Zeppelin Ukraine installed repair base on certain engines and models. DIESEL ELECTRIC Machines like wheel loaders and dozers that are constantly operating in and out of direct mechanical drive can benefit from improved efficiencies with diesel electric drive systems. Caterpillar currently offers diesel-electric machines like 988XE and the D7E.
DIESEL ELECTRIC TRUCKS Mechanical drive delivers the highest power utilization and weight efficiency in direct-drive applications like haulage for mining trucks. Caterpillar also offers state-of-the-art diesel-electric drive trucks suited for certain applications and customer preference. For example, the proven 794 AC (290 metric ton) mining truck leverages over 5.5 million hours of Caterpillar’s fully integrated AC drive system. TROLLEY ASSIST Caterpillar diesel electric mining trucks utilizing high voltage trolley systems uses electricity to reduce fuel consumption, carbon dioxide emissions, and increase engine life. This solution, compatible with Cat 794 AC, 795F AC, 796 AC, and 798 AC trucks, also increases speed on grade by 100% on a specific stretch of haul road. NON-COMBUSTION SOLUTIONS For mobile equipment, Cat electric rope shovels are extremely energy-efficient tools with zero direct carbon emissions. In fact, they regenerate power. Our electric powered Cat hydraulic mining shovel offerings are also a great option for reducing carbon footprint. HYBRID SYSTEMS Caterpillar also offers the Cat hybrid microgrid system, which contains both photovoltaic solar modules and energy storage, integrating renewable power with smart energy storage and conventional diesel or gas fueled power generation. BATTERY ELECTRIC VEHICLES Caterpillar has unveiled the development of its first battery-powered vehicle, the R1700 XE underground loader. Benefits can include reducing ventilation infrastructure requirements and costs; generating less heat and dust that must be removed with additional air conditioning; and lowering the overall operating costs of the mine. BUILDING A BETTER WORLD These are just a few of the many ways that Caterpillar’s vast range of products and solutions helps our customers build a better world. ABOUT CATERPILLAR Since 1925, Caterpillar Inc. has been helping our customers build a better world – making sustainable progress possible and driving positive change on every continent. With 2019 sales and revenues of $53.8 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and dieselelectric locomotives. Services offered throughout the product life cycle, cutting-edge technology and decades of product expertise set Caterpillar apart, providing exceptional value to help our customers succeed. The company principally operates through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and provides financing and related services through its Financial Products segment. © 2020 Caterpillar. All Rights Reserved. CAT, CATERPILLAR, LET’S DO THE WORK, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.
www.zeppelin.ua
FERREXPO
despite some periods of weaker demand from specific regions during the year. However, while Ferrexpo’s footprint was reaching around the world, so was something else. From Ukraine to the US, everyone all over the globe has been affected by the COVID-19 pandemic. For Ferrexpo, the impact of the COVID-19 pandemic began with disruption to Chinese supply chains impacting the distribution networks of steel producers and their customers, which Ferrexpo cautioned could result in short-term volatility for the iron ore market as high levels of steel inventory built up and were released into the supply chain once normal operations resumed. The company also anticipated that the spread of the virus into Europe could result in further economic uncertainty. Before the advent of COVID-19, Ferrexpo had been forecasting that steel profitability in Europe would show a mild recovery in key markets from the second half of the year onwards. However, even with the impact of COVID-19, Ferrexpo believes it remains well-placed to manage its way through the current uncertainties due to the company’s low-cost position relative to its peers, as well as a well-invested asset base, premium customer portfolio and strong balance sheet. “The COVID-19 pandemic is unprecedented in the modern era. We haven’t faced anything of this nature in the last 100 years and it places
a lot of challenges on most organisations and countries,” North admits. Ferrexpo lost no time in responding to the crisis and the focus has been protecting its people. “We sent approximately half our workforce to home isolation and have requested them to stay there as a precautionary measure. We particularly focused on those with pre-existing conditions and employees in the higher age bracket,” he says. “We have taken all the necessary precautions for ensuring that the virus is kept away from our operations and doesn’t spread within the community.” Ferrexpo also went on to cancel all business trips in accordance with respective government advice and enforce a working from home policy in locations where the COVID-19 had a more severe impact. The company is continuing to follow advice from health authorities in Ukraine, as well as other jurisdictions where its employees are based. At the same time, Ferrexpo has worked to support the community beyond their business, as North explains, “We provide support to local hospitals in terms of protective equipment, ventilators and X-ray machines. We’ve contributed to local medical facilities to ensure the local and regional hospital are well equipped to handle any necessary COVID response.” Out of Ferrexpo’s 9,000 employees, to date, only three have returned a positive COVID
diagnosis. North is thankful for the good fortune but insists that it isn’t just down to luck, in his opinion, it is more to do with the organisation’s response and preparedness, as well as effective communication with the workforce and the local community. “People have told me specifically that we’ve been very lucky, and there may be some element of luck. However, I respond that the success to date has been due to our team, and the excellent management of the situation. We acted early and we focused on communicating the need
“OVER-COMMUNICATE! I TELL THE TEAM ‘WHEN PEOPLE SAY THEY’RE TIRED OF HEARING THE MESSAGE, YOU KNOW THEY’RE HEARING THE MESSAGE.’” 10 | BUSINESS FOCUS MAGAZINE
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for precautionary measures to be effectively implemented,” he says. “Over-communicate! I tell the team ‘When people say they’re tired of hearing the message, you know they’re hearing the message.” Despite the pandemic, Ferrexpo has managed to adapt to the situation in such a way that, to date, the company has seen a minimal impact on its operations. “Our production lines have not stopped and our marketing team have done an amazing job. Some of our European customers reduced their demand for pellets as a
“OUR MARKETING TEAM MOVED QUICKLY TO REDIRECT THE DISPLACED VOLUMES TO OTHER DESTINATIONS AND THEY’VE BEEN SUCCESSFUL. EVERYTHING DISPLACED FROM THE EUROPEAN MARKET WE’VE PLACED IN OTHER MARKETS AND IN ADDITION, WE HAVE DRAWN DOWN OUR PRODUCT STOCKPILES.”
Ferrexpo employees in beneficiation plant.
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PROBLEM? SOLVED. OPTIMISING SITES WORLDWIDE
Throughput issues, reduced capacity, dreaded downtime. Whatever your problem, Weir Minerals is here to help you solve it. Our integrated solutions team combines unique technical expertise, local access and global knowledge to optimise your entire process. We don’t just sell products, we solve problems.
Learn more about our integrated solutions at www.problemsolved.weir
Copyright© 2018, Weir Minerals Australia. WEIR is a trademark and/or registered trademark of Weir Engineering Services Ltd.
+38 056 373 66 27 www.global.weir
WEIR MINERALS UKRAINE The Weir Group PLC is one of the world’s leading engineering businesses serving mining, infrastructure and oil and gas customers in more than 50 countries. We work in partnership with our customers to solve their toughest operating challenges safely, efficiently and sustainably, helping to provide the essential resources needed by a growing world. We have research centres and manufacturing facilities around the world designing and producing a range of highly engineered solutions used in high wear applications. These are supported by an unrivalled global service network that ensures Weir engineers can provide our customers with the solutions they need where and when they need them. Weir Minerals are specialists in designing, manufacturing, delivering and supporting critical process equipment solutions including pumps, hydrocyclones, valves, comminution equipment, rubber and wear resistant linings for the global mining, mineral processing, sand, aggregates and industrial sectors. We are proud of our extensive global service and manufacturing presence in more than 70 countries that develops, supports and sustains market leading technologies to deliver enhanced performance in your process critical applications. At Weir Minerals we have over 20 design centres technology groups across the globe, which are the research and development centres for specific product categories. More than 300 engineers are responsible
for product development, customisation and providing day to day support. We invest heavily in our material development capability and state of the art wear resistant materials with properties that allow longer life cycles. Backed by a global network of research and design support, our metallurgy, polymer science and hydraulic experts develop and implement the wear resistant products of the future. Our sophisticated laboratories are designed to conduct advanced material analysis on all our technological developments. Through a customer focused strategy Weir Minerals has used its unique technologies to develop an unrivalled range of comminution, mine dewatering, process water and specialist slurry processing equipment for some of your most critical processes. This means that today’s Weir Minerals is much more than a pump company. We have been partnering our customers in Ukraine for more than 20 years to maximise productivity of their operations and minimise equipment total cost of ownership. Weir Minerals Ukraine T: +38 056 373 66 27 www.global.weir
Professionals of scientific research, design, survey and installation supervision. Our main customers are mining and metallurgy enterprises, as well as urban infrastructure and civil engineering facilities. The geography of our activities includes Ukraine, the CIS countries, Europe, the Middle and Far East. Phone: +380 67 633 57 51 Email: info@npo-rakurs.com
Haver & Boecker Niagara is a leading provider in screening, pelletizing and plant systems. The current Mineral Processing Technology’s product range extends from customized solutions consisting of single machines, includes system configuration, and extends through the turnkey handover of complex plants. Our mission is to deliver the best praxis products to customers in the, mining, industrial minerals, fertilizer and salts and the Aggregates industries. With deep roots and years of experience in these industries, Haver & Boecker Niagara uses its innovative and shared technologies to effectively meet the needs of customers around the world. Together with our partners ‘SPA‘ RAKURS ’LLC, we successfully implemented a joint work at Poltava Mining (Ferrexpo AG) and Central GOK (Metinvest Holding).
HAVER NIAGARA Robert Bosch Str. 6, 48153 Muenster, Germany Phone: +49 (0) 251 9793 0 Email: info@haverniagara.com
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www.haverniagara.com
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result of lockdown measures implemented throughout Europe,” North recalls. “Our marketing team moved quickly to redirect the displaced volumes to other destinations and they’ve been successful. Everything displaced from the European market we’ve placed in other markets and in addition, we have drawn down our product stockpiles.” Indeed, in Ferrexpo’s Second Quarter results the company reported that its facilities have continued to operate with minimal impact on operations to date, even as it continues to closely monitor its workforce. Ferrexpo has also continued to engage with local communities surrounding its operations and confirmed that the infection rate in those communities remains low. Ferrexpo has maintained its good safety performance indicators into 2020 and has suffered no fatalities in 1H 2020 while keeping the Group’s lost time injury frequency rate below 1.0x. This excellent safety record hasn’t been at the cost of production either, with secondquarter pellet production for 2020 up 5% to 2.9 million tons, compared to 2.7 million tons for the first quarter. 1H 2020 pellet production is up 5% to 5.6 million tons, compared to 1H 2019’s figure of 5.4 million tons, while 1H 2020 sales volumes increased by approximately 21% to 6.1 million tons, compared to 5 million tons for 1H 2019.
Ferrexpo processing plant.
BRINGING HOME THE INNOVATION
Like many businesses, the COVID crisis has given Ferrexpo cause to reconsider how we operate. “What we’ve had to work through for the last few months has made us reconsider how we operate,” North says. “For instance, while working remotely is less than ideal, a
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lot of things can be done that we wouldn’t have previously considered. We’ve learned through this process and its made us rethink how we need to manage the organisation going forward.” “In terms of technology and innovation, one thing we benefit from substantially in Ukraine is it’s a low-cost environment to operate,” North says. “However that hasn’t stopped us increasing focus on automation and using data to drive our decisions.” Automation might seem like a counter-intuitive avenue to pursue in a country known to have a lower cost of labour, but as North points out, the technology journey isn’t about the cost of labour, it’s about reducing the exposure of the workforce to hazardous working conditions and increasing the utilisation of capital deployed.
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ENJOY COOPERATION As official representative of Metso International Group, we always put the customer’s interests at the center of what we do. MCES offering covers full range of services to supply equipment, spare parts, wear-resistant materials and services of OEM machinery within Mining, Aggregates, Recycling and Processing industries. MCES service team of certified professionals implement proactive service culture in complex equipment maintenance. We understand our Customers’ real issues and offer experienced support to address numerous challenges in everyday activity.
Sweden: MCES AB // + 46 76 076 75 70 Ukraine: SV TEK LLC // +38 056 462 82 82 Kazakhstan & Kyrgyzstan: MCES KZ LLC // +7 777 782 52 68 Tajikistan & Uzbekistan: MCES UZ LLC // +99 894 678 54 44
Email: info@mcesab.com Visit us at:
www.mcesab.com
Energosteel Company is one of the leading grinding media manufacturers in Europe. We produce steel grinding balls from 20 mm to 125 mm with high volumetric hardness. 22 years on the market, over 70 thousand tons of steel grinding balls produced per year. Deliveries all around the world: from Europe to the USA. Energosteel Company 44, Antonovycha str., Kyiv, Ukraine +380 (44) 580-24-14 office@energosteel.com energosteel .com
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MCES AB Equipment service solutions are significant part of the global Metso Outotec sales structure. Sustainable service support is a complex process aimed to improve productivity, performance and profitability. MCES AB business model focuses on commitment to national markets: we are presented in Ukraine («SV TEK» LLC and «MCES Ukraine» LLC), Kazakhstan and Kyrgyzstan («MCES KZ» LLC), Tajikistan and Uzbekistan («MCES UZ» LLC). Our mission is to provide service solutions based on unique knowledge of the equipment, the latest engineered upgrades, advanced process controls for Mining, Aggregates, Recycling and Processing industries. Maintenance is not just replacement of one part with another, it is a full range of activities to safeguard machinery and maximize its lifetime: inspections and diagnostics, refurbishment and repair procedures, adjustments and installation of components. Ferrexpo Poltava Mining is our Key Account in Ukraine and «SV TEK» LLC service team is fully dedicated to help meet its maintenance, repair and refurbishment needs by implementation of customized advanced control systems and sensing software solutions with proper training and performance verification. Best global practices, experience and skills are available to our customers. Combining our service network, deep industry knowledge and field service expertise we provide sustainable solutions to deliver increased productivity, maximize the use of machinery, eliminate waste and reduce risk, ensuring safety for all.
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FERREXPO
“WHAT WE’VE HAD TO WORK THROUGH FOR THE LAST FEW MONTHS HAS MADE US RECONSIDER HOW WE CAN OPERATE. FOR INSTANCE, WHILE WORKING REMOTELY IS LESS THAN IDEAL, A LOT OF THINGS CAN BE DONE THAT WE WOULDN’T HAVE PREVIOUSLY CONSIDERED.
TES UKRAINE The official representative in Ukraine of the companies TES Vsetin, HIOKI, WIKOV Gears, T-T Electric. We are an electrical company. Our main products are high-quality electrical motors and generators from TES Vsetin factory, adapted for use in any industrial solution. We develop projects for electromechanical solutions for industry, energy-saving technologies, motion control technologies, and alternative energy. We offer a wide range of equipment made in Europe and Japan for our solutions. TES Ukraine B. Khmelnitskogo 17/52, BC Leonardo, 4th Floor 03010, Kyiv, Ukraine Tel: +38 050 585 9840 // +38 098 962 4958 Email: tes@tesukraine.com.ua www.tesukraine.com.ua
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“When people ask why we are investing in automation and technology when our labour costs are comparatively low, I reply that we must plan for the future, and we expect labour costs to increase over time in line with the development of the country,” North says. “More importantly, if we look at the younger generation it is increasingly difficult to attract young people to what they consider to be low-level occupations, such as truck driving, and there is the perception that mining is a dirty job. More broadly there is a lot of concern regarding climate change and a perception that the mining industry is a major contributor. We need to appeal to the next generation of miners so that they understand that mining is high tech and that Ferrexpo specifically is very focused on the issue of climate change and reducing our carbon footprint.” Perhaps the most recent representation of our intentions regarding technology deployment is our autonomous haul truck project. We commissioned the first fullyautonomous CAT793 late last year, in partnership with ASI Mining and Epiroc. “Because of COVID 19, we suspended the project, however, we intend to restart the project in July and our aim is to have our first fleet of autonomous trucks running by early in 2021,” North says. This project is a real first, not just for Ferrexpo, but for Ukraine and Europe as a whole. It’s something North takes no small amount of pride in. “This is a big step for us. When you think about mining companies embarking on fleet automation, it’s usually the major miners who come to mind, not companies of our size,” he says. “So to be the first in Europe to do this, we’re pretty excited.”
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“WHEN YOU THINK ABOUT MINING COMPANIES EMBARKING ON FLEET AUTOMATION, IT’S USUALLY THE MAJOR MINERS WHO COME TO MIND, NOT COMPANIES OF OUR SIZE. SO TO BE THE FIRST IN EUROPE TO DO THIS, WE’RE PRETTY EXCITED.” BUSINESSFOCUSMAGAZINE.COM
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