Amazing workforce fills me with pride, says outgoing Ferrexpo boss

The outgoing boss of Ukraine-based Ferrexpo praised the spirit of his staff as he concluded his last week at the iron ore pellet maker.

Jim North, who has led the FTSE 250 company for just over three years, today ends his stint as CEO after a tumultuous tenure marked by the pandemic and a major European war.

Speaking from his home country of Australia, the 53-year-old North recounted the frenetic rattle that followed when Russian forces attacked in February, despite the group planning a possible invasion.

“Russia threw everything at Ukraine and attacked from all sides,” he said. ‘Back in the beginning [of the war] we met every four hours to discuss the situation and go through scenarios and options.’

Almost overnight, Ferrexpo was forced to refocus its operations and export routes after the Black Sea port of Pivdennyi, which used to export about half of its iron, was closed.

Troubles continued last winter when Russian missiles began raining down on Ukraine’s power grid in an attempt to freeze the population and break morale.

“It was a big deal — not just from a business point of view, but for the local community,” said North.

“All of our employees are recruited from villages around our company, so the prospect of getting through the winter with minimal power and making sure everyone had heating was one of the biggest concerns.”

Acknowledging the devastating human impact, he revealed that 25 Ferrexpo employees have been killed in fighting so far.

“We’ve done our best to support their families, but we can’t fix things like this,” he said. “I can’t imagine how devastating it is to lose a family member who defends your country.

“I have nothing but pride and admiration for how resilient everyone has been and how they have handled this threat looming over them. I’ve told my team time and time again how proud I am to be a part of this.”

Shortly after the outbreak of war, the Ferrexpo board approved around £16 million in humanitarian aid, most of which has been spent over the past 15 months on emergency supplies, including food, medicines and first aid kits.

North particularly praises Yaroslavna Blonska, Ferrexpo’s acting chief marketing officer, who helped organize a shipment of 60 tons of baby food and food to Ukraine’s capital Kiev.

Ferrexpo also faced an influx of refugees fleeing the Russian advance.

Closure: Ferrexpo had to refocus its activities after the Black Sea port of Pivdennyi (pictured), which previously exported about half of its iron, was closed

North said the company housed 8,000 refugees about four months after the invasion, mostly in temporary housing usually reserved for visiting contractors and consultants.

While many have left, some “chose to stay” and were even recruited. “We offered about 120 jobs that chose to stay,” he said. ‘Because where they come from, it is no longer possible to work.’

The company has also helped build bomb shelters near schools in the area as Russian shelling and rocket attacks continue.

North, who last visited the country in February, outlines the complexities of reaching Ferrexpo’s operations, which are concentrated near the city of Kremenchuk on the eastern bank of the Dnipro River that flows through Ukraine.

“It’s quite a journey to get in,” he said. ‘You fly to Krakow or Warsaw in Poland. But due to a curfew, we can’t reach the location directly, so we have to spend the night in Kiev.’

But he says it’s important to make the journey, adding: ‘The guys who work there really appreciate it when we go in. You can support from the outside, but visiting in person is an absolute must for morale.”

The war looks set to end a bumpy tenure for North, who was named acting CEO in May 2020 amid the pandemic.

He took up the role on February 14 last year, ten days before Russian tanks rolled across the border.

While North said 2020 and 2021 were “the best years” the company has had, the war put a brake on many plans.

“We hoped that 2022 would be a great year for us,” he said. “We’ve got a lot of projects planned, so it’s pretty disappointing that the Russians chose to do what they did.”

Despite the headwinds that continue to plague the company, North says he has unwavering confidence in Ferrexpo’s employees.

“We had quite a few people leave in the early stages of the war, but for those who stayed, the level of commitment was extraordinary,” he said.