Summing up the results of the previous year is a great way to comprehensively see the achievements and bottlenecks in the work of the enterprise and form a vision for the next period. What was 2024 for our plant, what significant things happened during this period of time, what tasks are facing us now? The answers to these and other questions are in an interview with the Chairman of the Board Igor Burak.
– What were the priority tasks for Zaporizhzhiabraziv at the beginning of 2024, and how did we cope with them?
– First of all, we had the task of completing the overhaul of furnace No. 1 for melting normal electrocorundum, and we completed this very large and responsible work not only on schedule, but also with savings on planned expenses.
One of the most important tasks of 2024, which required a lot of effort and resolution, was the restructuring of credit obligations to JSC “Ukrgasbank”. The work of the plant in general depended on the resolution of this task. And we successfully coped with it.
Also, our goal, which we achieved, was to maintain the sales volumes of the plant’s products in conditions of reduced consumption and dumping competition from Chinese manufacturers. We even partially exceeded our plans on this point: the sales volume of electrocorundum in 2024 increased by 37% compared to 2023, the sales volume of abrasive tools in 2024 increased by 7% compared to 2023. Only the sales volumes of silicon carbide have “sagged” due to the suspension of the production of CK from September 2024 to the present.
And it was also very important for us to preserve the collective of our enterprise, to preserve the production and intellectual potential of the abrasive industry of Ukraine, of which we are a unique representative. And we succeeded in this, largely due to the timely booking of employees of critically important professions and positions.
I would like to note that the fruitful result that we have achieved in all these issues is due to the direct participation in their resolution by the Chairman of the Supervisory Board, Maksym Bielawski.
– Despite all the difficulties that we had to face last year, the collective of our enterprise has achievements. Which of the completed projects do you consider to be the most significant?
– Of course, this is the completion of the overhaul of furnace No. 1 at the production of electrocorundum. Now we have the technical ability to operate two EN melting furnaces, which has a positive effect on the cost of production and, as a result, gives us greater competitiveness.
The creation of a customer service center was also a significant step. The implementation of this project allowed us to organize better work of the plant with buyers of our products.
– Thanks to what we were able to achieve success in solving problems and implementing projects?
– Thanks to clear planning and effective use of resources, control over executive discipline, as well as the conscientious attitude of employees to their work.
– Which divisions showed the best results of work at the end of the year?
– I am very grateful to all colleagues, but especially to the employees of the silicon carbide, electrocorundum normal and abrasive tool production plants. They worked hard to achieve high planned indicators and achieved very good actual results. In some months, colleagues from shops 62 and 12 demonstrated simply fantastic achievements.
– If we talk about what we failed to do last year, what three or five most significant moments can you name?
– Unfortunately, we did not manage to reach the monthly profitability of production and economic activities. It was also not possible to obtain consistently low technical and economic indicators of silicon carbide smelting.
During the year, we could not achieve consistently high quality of abrasive tools for a long time. Only towards the very end of the year, thanks to the involvement of a leading highly professional technologist, did we begin to see a trend towards improving quality. And we still have a lot of work to do in this direction.
– The results of the work are a general team result, which in any case is influenced by external factors: military operations, the economic policy of the state, the situation on the international market, etc. Do you attribute the causes of our problematic moments mainly to internal or external factors?
– I consider the negative impact of military operations in Ukraine to be decisive: industry is stagnating, demand for abrasive products is decreasing, raw materials and energy resources are becoming more expensive, logistics are becoming more expensive, and the shortage of personnel is increasing (to a large extent due to mobilization processes). Therefore, unfortunately, we cannot talk about full-fledged development of production at the moment, and we are making every effort to stabilize the current state, trying to prevent its deterioration. Internal factors, of course, also play a role, but we have more influence on them.
– What failures could we write down in our achievements, but did not do so because we did not finish somewhere?
– This can include, firstly, the development of a network of regional sales representatives. Work in this regard was started in 2024, but due to objective difficulties it continues in 2025. We need to implement this project in order to become closer to the end consumer.
The second point that I can note here is that due to financial instability we did not start the reconstruction of the “dry grinding” in shop 62 in 2024, currently we are only carrying out the design ourselves. The existing equipment of the dry grinding line has practically exhausted its physical and moral resource, it has technological limitations in the production volumes of the EN grinding fractions, which are most in demand, and this slows down our sales volumes.
– In which production areas in 2024 was the work most intense?
– Traditionally, these are shops 2, 62 and 12.
– What are the overall economic indicators for the enterprise as a whole according to the results of the year?
– In 2024, we have the following results:
Sales of finished products
The total amount (including VAT) from sales of finished products is UAH 1,598 million, which is 6% less than in 2023.
Of this amount, the share of abrasive material is UAH 1,213 million, and the share of abrasive tools is UAH 305 million.
Products sold:
– normal corundum – 22,324 tons;
– silicon carbide – 8,429 tons;
– cutting wheels – 11.8 million pcs. (for the amount of UAH 12.7 million);
– ceramic-bonded wheels – 424 tons;
– Bakelite-bonded wheels – 518 tons.
Taxes
In total, taxes were paid in the amount of UAH 123.0 million, which is 7% more than in 2023. In particular, PrJSC “Zaporizhabraziv” paid UAH 115.6 million to local budgets, and UAH 7.3 million to the State Budget.
Wages
Last year, the enterprise paid UAH 211.4 million in wages, which is 10% more than in 2023.
Energy costs
In total, the plant spent UAH 557 million on energy, of which UAH 534 million was paid for electricity, UAH 17.8 million for natural gas, and UAH 4.9 million for water.
– What percentage of production capacity was used to manufacture finished products on average per year?
– Approximately, the plant used only 30-40% of its available production capacity.
– In order to use maximum capacity, appropriate sales are required. What dynamics are noted in this issue according to the results of the year?
– During 2024, PrJSC “Zaporizhabraziv” exported two types of grinding materials: normal electrocorundum and black silicon carbide, as well as a wide range of abrasive tools. The dynamics of sales of normal electrocorundum demonstrated stable growth every quarter, with an average of 16%. The main factor in growth was the increase in demand from manufacturers of cutting and grinding wheels.
Sales of abrasive tools also showed positive dynamics, especially in European markets, where our products are gradually gaining consumer trust due to stable quality, competitive prices and the expansion of the dealer network. In 2024, special emphasis was placed on the development of partnership programs with large distributors and manufacturing enterprises, which allowed us to significantly increase sales volumes.
– How do you assess the competitiveness of the enterprise in the domestic and foreign markets?
– The plant occupies a stable position among manufacturers and suppliers of normal electrocorundum, the main sales market of which is the EU countries. Our competitiveness is ensured by stable product quality, timely and flexible logistics, as well as a competitive pricing policy. High trust in the enterprise is confirmed by long-term cooperation with foreign partners who continue to work with PrJSC “Zaporizhabraziv” even in difficult geopolitical situations.
As for abrasive tools, the enterprise is actively developing this area, competing with international manufacturers. The high quality of our cutting and grinding wheels is confirmed by MPA Hannover certification, allowing us to gradually increase our market share. In addition, we offer flexible terms of cooperation for dealers and manufacturing companies, which strengthens the competitive advantages of products under the Zaporizhabraziv brand.
– Has the share of the company’s sales in foreign markets changed?
– The share of sales of normal corundum has increased by an average of 15% over the past year. Abrasive tools also demonstrate positive sales dynamics. Thanks to the expansion of the partner network and active participation in international exhibitions, we were able to conclude new contracts with European consumers, which contributed to an increase in exports. The introduction of special loyalty programs for key distributors and manufacturing companies allowed us to consolidate our presence in the market.
At the same time, sanctions against Chinese and Russian manufacturers of abrasive products open up new prospects for our company in the Ukrainian and EU markets. However, the realization of this opportunity will fully depend on electricity prices in 2025.
– What can you say about our quality indicators?
– As I mentioned above, thanks to the involvement of a high-class technologist in our team at the end of 2024, we managed to significantly improve the quality of abrasive tools. This is evidenced by the feedback from our dealers and consumers. As for electrocorundum and silicon carbide, here the plant’s team always maintains a high standard of strict compliance of the quality of abrasives with the requirements of regulatory documents. We did not receive any critical complaints or claims about the quality of abrasives in 2024.
– In your opinion, a review of what approaches to work can improve our results?
– We need diversification (distribution of purchases among several companies. — Ed. note) of bauxite suppliers to ensure the production of EN with raw materials of proper quality. The quality of abrasives critically depends on this. And we are working on such diversification. We also continue to work on strengthening operational control of each stage of product manufacturing.
– How do you generally assess the work of our company’s team in 2024?
– Our team deserves a high assessment of its work in 2024. Living and working in a front-line city is only possible for courageous and selfless patriots.
– What are the most important tasks facing the team of PrJSC “Zaporizhabraziv” right now?
– We need to achieve stable and effective smelting of electrocorundum in two furnaces as soon as possible. This, in turn, requires: a) solving the problem of personnel shortage; b) timely import of high-quality bauxite.
By the end of February, we need to rebook 50% of military-duty employees in the most critical and important professions and positions.
Among the most important priority tasks is also to complete the already started negotiation process with the electricity supplier and obtain economically advantageous prices for the plant.
Well, another important task that we are working on is to increase the volume of sales of abrasive tools to 50 million UAH/month.
– A few quick questions that concern you personally:
1) What do you consider to be your main individual result of the past year?
– I think I managed to keep a balance in my relationship with my family, working for a long time in Zaporizhia. And I am grateful to my wife for her understanding, patience and support.
2) What do you like most about your work?
– The opportunity to see the real result of your work.
3) What is your main incentive to act?
– Responsibility for your actions or inaction before people, the team.
4) Without what is success in any business impossible?
– Without faith in yourself and the team around you, people in which must be like-minded.
5) What dream would you like to realize in 2025?
– My dream, which I think is the biggest dream of all Ukrainians, is our speedy victory, the coming of peace, and the reconstruction of the country.
