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Posted On

06
May
2022

ArcelorMittal Kryvyi Rih operates at 20% iron smelting and 50-60% iron ore production capacities due to war – report

KYIV. May 6 (Interfax-Ukraine) – The ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) is loaded by 20% for iron smelting and 50-60% for iron ore mining, according to ArcelorMittal’s quarterly report.

"With the outbreak of war in Ukraine, the company announced the suspension of operations at the plant to protect its people and property. Since then, we have gradually resumed work and are currently operating one of the three blast furnaces. Blast furnace No. 6 (approximately 20% capacity of the plant) was restarted on April 11, 2022 (to resume production of pig iron at a low level). Iron ore production is currently loaded at about 50-60%," the company said.

"Our results in the first quarter were overshadowed by the war in Ukraine. We focused on supporting our 26,000 colleagues and their communities at a time of tragedy and hardship," ArcelorMittal CEO Aditya Mittal said.

At the same time, ArcelorMittal actively supports the efforts to provide humanitarian assistance in Ukraine, donating $7.6 million to date. Including ArcelorMittal Kryvyi Rih donated $1 million for humanitarian assistance in Kryvy Rih to provide food, medicine and equipment for local hospitals.

ArcelorMittal Kryvyi Rih also donated another $1 million to the government of Ukraine’s humanitarian efforts aimed at providing refugees with food, shelter, medicine, and clothing.

Among other things, ArcelorMittal channels donations from its employees around the world through the UN’s humanitarian work UNICEF, with over $5.6 million donated to date.

The company also implemented a program of voluntary evacuation to Poland and Western Ukraine of family members of ArcelorMittal Kryvyi Rih employees in response to their requests. About 1,000 people were safely evacuated.

The company in the first quarter of 2022 reduced steel shipments by 20.3% to 2.1 million tonnes compared to 2.6 million tonnes in the fourth quarter of 2021 and by 20.2% compared to the first quarter a year earlier, mainly due to the impact of the situation related to the war unleashed by Russia against Ukraine.

The report recalled the planned investment in ArcelorMittal Kryvyi Rih for the construction of a new pelletizing plant with a capacity of 5 million tonnes of pellets per year. At the same time, the project will reduce CO2 emissions by 750,000 tonnes of CO2 per year. Initially, the first pellets were expected to be produced in the fourth quarter of 2023 at a capex of approximately $300 million. However the revised completion date and budget will depend on when the project can be effectively restarted due to the Russian invasion of Ukraine. It is estimated that the project has the potential to increase EBITDA by approximately $70 million upon full completion and after the capacity ramp-up.

ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, in particular rebar and wire rod.