Business news from Ukraine


22 June , 2015  

KYIV. June 22 (Interfax-Ukraine) – ArcelorMittal, the largest metal company in the world, has invested $1.2 billion ArcelorMittal Kryvyi Rih (former Kryvorizhstal, Kryvy Rih, Dnipropetrovsk region) and the company has no plans to sell the enterprise due to the difficult situation on the metal product markets, CEO Paramjit Kahlon said at a trade union conference held on June 11.

“We’re doing business. Sometimes it brings profit, sometimes – not, there are only losses. If we have losses, it does not mean that everything should be left. The corporation has spent $1.2 billion here,” he said.

Kahlon said that the company still has many projects, and some of them will be realized in the near future.

“What other foreign company spends such money in Ukraine? We do this not to throw once everything. Goods times would arrive, I’m sure in this. Then we won’t doubt and increase wages by 15% or 20%. Now times are hard. The enterprise will be able to survive them with your support,” he said.

When asked about the expected 12% reduction of the mining department workforce, Kahlon confirmed that this would happen.

“I cannot name the figure now, as everything should be checked,” he said.

Kahlon also said that the increase of wages by 8% announced in October, if finally agreed with the head office, would also affect employers with fixed salaries. He also said that increasing salaries for other workers should be discussed.

At the conference ArcelorMittal Kryvyi Rih proposed to representatives of the owner of the enterprise to increase salaries from October 1 by another 8%. It was also proposed that 50% of bonuses for 2015 will be paid by July 7, and the rest will be paid in February 2016.

The trade union of ArcelorMittal Kryvyi Rih insists on an increase of salaries for its workers, taking into account the devaluation of the hryvnia, and the growth of utilities tariffs, prices of food and articles of prime necessities.