European Bank for Reconstruction and Development (EBRD) will provide ArcelorMittal Kryvyi Rih PJSC (AMKR, Dnipropetrovsk oblast) with a $100mn loan to replenish its working capital.
“The loan will be used to finance the company’s working capital needs to ensure business continuity in Ukraine,” the bank said in a statement Thursday.
According to it, the bank’s board of directors approved the project at a meeting on Dec. 14.
The EBRD recalled that it provided financing to AMKR in 2017, developed a comprehensive Environmental and Social Action Plan (ESAP) and monitored its implementation by PESM, making monitoring visits to the company in recent years.
“Overall, the company was on track for implementation and reported as required. The provision of working capital under the concept of sustainability of Ukraine will allow, among other things, to continue investment plans and implement the existing ESAP, which, in turn, will significantly improve the environment, health and safety at the site,” – pointed out the bank.
The EBRD clarified that a key aspect of the current investment program is the modernization of the sinter plant, and this investment process is ongoing, with work on the sinter lines as well as the air treatment facilities, but some investments planned for 2022-2023 have been postponed due to the ongoing war and the proximity of the front.
“ArcelorMittal Krivoy Rog is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, particularly rebar and wire rod, and is owned by ArcelorMittal.
On November 24 this year, after the blackout caused by Russian missile attacks on the energy infrastructure, AMKR reported about critical limitation of electricity consumption and suspension of most of the production processes. According to the company, the available amount of electricity is not enough to maintain production even at 20% of capacity.
In addition, on the night of December 5, AMKR was hit by a Russian missile strike.
