Vertical integration model

DTEK is the largest privately owned, vertically integrated energy company in Ukraine. Its enterprises form a production chain from coal mining to electricity generation and supply. Today the Company fully covers the needs of its generation assets with its own coal. 

Vertical integration, alongside the advantageous location of assets, allows the Company to guarantee the quality and reliability of its entire production chain, as well as increase efficiency and create value. Vertical integration enables DTEK to reduce the business risks of its various units.

The transition to a vertically integrated model began in 2005, when the DTEK Corporation management company was created on the basis of the DTEK association. Following this, the Corporate Centre (DTEK LLC), which is responsible for financial and production results, was created, and unified management processes were introduced at all of DTEK’s enterprises. This has enabled the Company to ensure efficient operations among all units.

Vertical integration is one of the Company’s main competitive advantages in the market. DTEK’s development strategy envisions a balanced chain of coal production and electricity generation and distribution.

Vertical integration model: