Aid to fighters 9/11/2024 Read 4 min

Metinvest has built a shelter hospital for UAH 20 million: does the company plan to make money on underground construction

The first underground hospital was built in Ukraine. It is constructed based on a steel shelter by Metinvest in coordination with the "Skhid" Medical Forces. The medical stabilization point, which cost UAH 20 million, is located at a depth of 6 meters. It consists of six cylindrical bunkers having dimensions of 7.6 m by 2.5 m and additional rooms and can accommodate 100 wounded soldiers from the front line per day. Oleksandr Myronenko, Chief Operations Officer of Metinvest, told Delo.ua about the story of construction of the hospital and other underground structures for the Ukrainian defense, and the prospects for the underground construction business.

– How did the underground shelter that Metinvest constructed for the Armed Forces of Ukraine in summer 2022 evolve into an underground hospital?

– The first such hospitals were created based on usual "kryivkas". Medical staff used them as first-level stabilization points. This proved to be effective, as such stabilization points should be located close to the front line. Usually, they were in rural houses, but they were often shelled. So, it is safer to have a stabilization point underground.

It was not until later that we came up with the idea of a full-fledged underground military hospital, located at a 6-meter depth. No one in Ukraine or in the Western world had ever done anything like this before. The armies of Western countries have similar hospitals, but they are containerized towns that are not designed to be dug in. Our combat-experienced guys asked during the training: how are you going to use the hospital if GBU moves at a speed of 80 km? There was no answer to this question. Therefore, we had no opportunity to rely on someone else's experience, and we developed the hospital ourselves together with the medical staff.

– How much did it cost to build the hospital, and do you plan to scale this experience?

– The hospital cost UAH 20 million. The 7.6 x 2.5 m barrels themselves cost UAH 500,000. The lion's share of this budget is the cost of medical equipment. We bought most of the medical equipment for UAH 7 million, but there was some specific military equipment that is not available on the open market. So the medical staff delivered it themselves. 

The hospital still exists as a single entity. It is constructed at the level suitable for regional territorial commands and can treat 100 wounded soldiers a day. But we have developed similar hospitals for brigades and battalions. They are slightly smaller in size, have less functionality, and are able to accommodate fewer fighters.

We have also constructed command posts based on "kryivkas" - 3 or 4 headquarters work in such underground control centers. There are leisure areas, showers, toilets, command rooms with monitors to control the battle online. There is also a 2.5 x 12 m command module, which we made customized.  Moreover, we made separate shelters for drone operators. They are smaller, can be carried into the landing on the shoulders and then assembled so that drone operators can work safely from the shelter.

We build everything related to metal structures ourselves. We have good locksmiths, welders, and erectors. And the internal equipment is installed by a team of contractors that we have agreed with the military staff and engage to fulfill such orders. In general, when working with contractors, we have tender procedures, but such developments represent a quite sensitive issue, and we cannot put it out to tender.

– Do you make money by supplying these pieces to the military and do you see any business potential in this?

– The potential is very high. But we have slightly different priorities now - we are doing everything we can to improve the country's defense capability. This is not just about hospitals. We do a lot of things that we then give to the Armed Forces of Ukraine free of charge.

 As of now, over 600 shelters have been delivered. One "kryivkas" costs about UAH 450,000, so in total it cost us UAH 270 million. A line of fortifications around Pokrovsk is being built based on our "kryivkas," including anti-tank ditches and strongholds. Currently, 31 of our excavators and about 100 employees are working there.

We see it as an investment in the country's security and defense capability. First, our shelters are used in areas that are critical for us to protect our businesses. These are the Zaporizhzhia and Pokrovsk sectors - a lot of our "kryivkas" go to the brigades that are defending these areas.

Looking ahead, we will patent our developments and possibly consider this line of business later. In fact, we are discussing with the government how we will replicate these developments. So far, we are thinking that we will provide our metal products for construction of hospitals, and the government will provide medical equipment. Because 20 such hospitals are worth UAH 400 million, which is quite much for us, given the financial situation of the company.

– Have you considered building such shelters for the needs of civilians? Is it possible to set up some kind of production or warehouses for business on this basis?

– For civilian use, appropriate certification is required. For military use, our shelters are certified; they have been properly tested and coded by the Ministry of Defence. We have had many discussions with the Ministry of Education to build shelters in schools based on our "kryivkas." But we have not yet been able to get the appropriate certification, so this issue is on hold.

As for warehouses, our shelters are too small. Even if it's a 15 x 2.5 m pipe, you can't make a large commercial warehouse out of our shelters. You can make a hangar out of our metal, but it will not be a dug-in structure. We sell our metal for the construction of warehouses, logistics centers, and hangars. Builders also buy our metal. But the "kryivkas" have a very limited functionality for use.

– What are the prospects for underground construction in Ukraine? Do you see any opportunities for yourself?

– We understand that Russia is not going anywhere. When the war is over, the Russians will still want to take over our country. I think that building regulations will be changed. All buildings will have to have mandatory bomb shelters, underground structures where people can take shelter. But these will be fixed built.

If we are talking about concrete shelters, the rebar we produce is used for its construction. This will be a quite significant potential area where our products can be used. This is a fairly large metal-intensive segment that is quite interesting to us. We will be present in it because we, together with "ArcelorMittal Kryvyi Rih," are now the key producers of construction steel in Ukraine.