Metal production, in particular iron and steel industry, is the dominant heavy industry in Ukraine. Ukraine is the world's eighth largest producer and third largest exporter of iron and steel (2007). Ukrainian iron and steel industry accounts for around 2% of worldwide crude steel output, 5% to 6% of the national gross domestic product and 34% of Ukrainian export revenue (2007 data). In 2007 it employed 420,000 people – 10% of industrial labor and 2% of the total workforce. It has the highest, by a wide margin, revealed comparative advantage of all branches of the Ukrainian economy. The industry peaked at 42.8 million tonnes in 2007 but was affected by the 2008 financial crisis and declined to 29.8 million tonnes in 2009. Ukraine possesses substantial natural reserves of iron ore. Ore mining exceeds the demands of domestic steel mills, but export potential is weakened by high extraction costs. The Ukrainian iron and steel industry is concentrated in central (Kryvyi Rih), southern (Zaporizhia, Nikopol) and eastern (Dnipro, Donets Basin, Mariupol) regions of Ukraine. There are 14 iron ore mining companies, 15 iron and steel mills, and three ferroalloy plants. Most of iron and steel is produced by large mills with annual capacity of between 4 and 7 million tonnes. As of 2006, 44.6% of Ukrainian steel was produced in obsolescent open hearth furnaces; modernization of plant and coping with rising energy costs are the main challenges to the future of Ukrainian steel. The Ukrainian steel industry has been privatized since the 1990s but the coal mines are still owned by the government and experience chronic financial problems. Ukraine is also a significant producer of manganese, manganese ore and manganese ferroalloys and has 75% of the ore reserves of the former CIS. The aluminium industry concentrates in Mykolaiv and Zaporizhia but is limited by energy availability and costs. Ukrainian production of uranium in the Dnipropetrovsk Oblast provides only 30% of domestic demand.
History
Copper Age
Metal production in Ukraine developed along the same lines as that of it near neighbours. The Stone Age and Copper Age boundary was unclear as most peoples retained Stone Age tools and used them alongside Copper Age tools.
The Trypilian culture began in Right-bank Ukraine Ukraine and existed from 5400 to 2000 BC. It is named after a site in the Kyiv region near Trypillia village, uncovered by Vikentiy Khvoyka in 1898. In southern part of Ukraine the Sredny Stog culture (4500-3500 BC) was the main influence along with the Catacomb culture (2800-2200 BC) and it is during these times that we see the earliest examples of copper technology in the form of fishing hooks and other implements around 2500 BC.
Bronze Age
Iron Age During the Iron Age, there were several influences on metallurgy: the Dacians, Cimmerians, Scythians, Sarmatians, among other nomadic peoples. The Scythian Kingdom existed here from 750 BC to 250 BC.
Ancient period The ancient Greek colonies founded in the 6th century BC on the north-eastern shore of the Black Sea, the colonies of Tyras, Olbia, Hermonassa, continued as Roman and Byzantine cities until the 6th century AD.
Middle Ages
Early Modern
19th and 20th centuries In 1868, the Millwall Iron Works Company received an order from the Imperial Russian Government for the plating of a naval fortress being built at Kronstadt on the Baltic Sea. Hughes accepted a concession from the Imperial Russian Government to develop metal works in the region, and in 1869 acquired a piece of land to the north of the Azov Sea from Russian statesman Sergei Kochubey (son of Viktor Kochubey). He formed the New Russia Company Ltd. to raise capital, and in the summer of 1870, at the age of 55, he moved to the Russian Empire. He sailed with eight ships, with not only all the equipment necessary to establish a metal works, but also much of the skilled labour; a group of about a hundred ironworkers and miners mostly from South Wales. He immediately started to build metal works close to the river Kalmius, at a site near the village of Alexandrovka. The state-of-the-art works had eight blast furnaces and was capable of a full production cycle, with the first pig iron cast in 1872. During the 1870s, collieries and iron ore mines were sunk, and brickworks and other facilities were established to make the isolated works a self-sufficient industrial complex. He further built a railway-line-producing factory. All of Hughes' facilities were held under the Novorussian society for coal, iron and rails production. The Hughes factory gave its name to the settlement which grew in its shadow, and the town of Hughesovka (Yuzovka) grew rapidly. Hughes personally provided a hospital, schools, bath houses, tea rooms, a fire brigade and an Anglican church dedicated to the patron saints St George and St David. The land around the metal works quickly grew to become an industrial and cultural centre in the region; the population of the city founded by Hughes now exceeds 1 million. Over the next twenty years, the works prospered and expanded, first under John Hughes and then, after his death in 1889, under the management of four of his sons. Amazingly, Hughes was only semi-literate - he was unable to write and could only read capital letters.
Natural resources
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