Business news from Ukraine

Business news from Ukraine

“Zaporizhgas” announced tenders for insurance

Zaporizhgas gas transmission system operator JSC announced a tender for voluntary motor vehicle insurance (hull insurance) and voluntary property insurance on June 13, according to the Prozorro electronic procurement system.
Expected tender price for hull insurance is UAH 85,4 thousand, for property insurance – UAH 147 thousand.
The last day to apply for participation is June 22.

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Dynamics of export of goods in 2021-2022

Dynamics of export of goods in 2021-2022

Source: Open4Business.com.ua and experts.news

Export changes in % to previous period in 2022-2023

Export changes in % to previous period in 2022-2023

Source: Open4Business.com.ua and experts.news

ArcelorMittal sharply reduces production in Ukraine

ArcelorMittal Krivoy Rog (Dnipropetrovsk Region) has reduced its production to 15-20% of its pre-war level from 30-40% achieved recently due to problems with technical water supply after Russian occupants blew up the Kakhovska hydroelectric dam.
“From an industrial, industrial point of view, we are certainly feeling the effects. We can use what we have – the reserves. But still, you remember we were working, we had somewhere between 30-40% recently, now we’re back to 15-20% of our labor force. And we don’t see the opportunity to get more orders right now,” said ArcelorMittal Krivoy Rog (AMKR) CEO Mauro Longobardo at a discussion organized by the European Business Association (EBA) on Wednesday on “The Kakhovskaya HPP blast: implications for business.”
He said the company will focus on fulfilling earlier orders and implementing projects to provide the plant with water from alternative sources. Longobardo estimates it will take at least six months to implement projects that provide alternatives.
“We will do our best to fulfill previous orders. With the new orders, we’re waiting for the situation to normalize. We have yet to see the Dnieper water level stabilize – every day there is a decrease in the level, and we don’t expect things to return to previous levels anytime soon. But to start using water from other reservoirs, it takes time – we will need pumping stations. That is about half a year at least. Certain preparatory work is already underway,” said the AMKR CEO.
As one of the measures to minimize the negative effects, the company intends to make a change in production planning so that there are periods with high consumption and lower consumption. If during normal times the water consumption at the plant was 2.4 thousand cubic meters per hour, now it has dropped to 1 thousand cubic meters per hour or less, Longobardo specified.
In this case, the top manager noted that even though the customers are concerned, they are sympathetic to the situation, and assured that with the available reserves the company will meet all current orders.
In turn, Sergey Plichko, the financial director of ArcelorMittal Krivoy Rog, during the discussion explained that such a significant drop in water consumption was due to the lowering of its pressure, which was applied in connection with the need to save water in the southern reservoir, through which also meets the water needs of 70% of the population in Krivoy Rog.
“In order to adapt to these conditions, we had to stop some units. At first we stopped production of steel and rolled products. Now we understand that we will be able to restart some rolling mills. We will try to put one of them back in operation tomorrow. Then we’ll look at the level of consumption and whether we can launch some other units,” he said.
According to Plichko, the situation is better in the company’s mining department due to the fact that process water is used in a closed circuit. “The situation in the mining department is better – there is a closed circuit of water consumption. The water used in the production process is settled and fed back into production. There is only minor consumption to replenish this level. But there are also sufficient reserves after the spring floods. At least for the next 2-3 months the mining department is provided with water for work”, – specified the financial director of ArcelorMittal Krivoy Rog.
Earlier it was reported that ArcelorMittal Kryvyi Rih PJSC (Dnipropetrovsk region) is returning people to normal mode after sending some personnel to remote work due to the termination of water supply to some units because the occupants blew up the Kakhovskaya HPP dam. It was also reported that the company suspended steel smelting to reduce water consumption under critical conditions.
“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.
ArcelorMittal owns in Ukraine the largest mining and metallurgical plant “ArcelorMittal Krivoy Rog” and a number of small companies, in particular PJSC “ArcelorMittal Beryslav”.

Canada has opened its market for dairy products from Ukraine

Canada has opened its market for Ukrainian products, particularly milk and dairy products, the press service of the State Service of Ukraine for Food Safety and Consumer Protection said.
“Thanks to the joint work of the State Service for Food Safety and Consumer Protection and the Ministry of Foreign Affairs, a new market for the sale of Ukrainian products, namely milk and dairy products to Canada has been opened,” the statement said.
Explanation of the requirements of Canadian legislation on producers of dairy products and indicated in the zoo-sanitary certificate are published on the official web-portal of Gosprodpotrebbey.
The form of the certificate for export of milk and dairy products agreed by the competent authorities of both countries can be found on the official website of the State Consumer Service in the section “International Cooperation” in the section “Certificates for export and zoo products”.
To start the export of food products the market operator must apply to the territorial body of the Service at the location of the production facilities.

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“ArcelorMittal Beryslav” increases limestone shipments to AMKR

ArcelorMittal Beryslav (Beryslav, Kherson region), one of ArcelorMittal’s Ukrainian subsidiaries, is increasing its shipment of limestone for ArcelorMittal Kryvyi Rih’s steelmaking operations.
According to the company’s press release, the production process was resumed this May after it was forced to stop.
It is specified that the enterprise is located in the village of Arkhangelskoye in Kherson region. It was forced to stop work completely in February 2022 because of the enemy offensive. Since that time, this territory was occupied, but on October 3, soldiers of the 129th Krivoy Rog brigade of territorial defense of the AFU liberated the settlements of Mirolyubovka and Arkhangelskoye.
“The real feat of the military allowed us to return to active work in the spring of 2023. Since March we began to ship the accumulated limestone from our warehouses. This raw material is used by ArcelorMittal Kryvyi Rih sinter plant for sinter production. Until the end of April the difficult demining of our territory continued, and from May 1 we were able to begin extraction of limestone in the quarry,” – said ArcelorMittal Berislav General Director Leonid Smolyarenko, quoted by the press service, and stressed that the company managed to keep its staff.
In turn, deputy director general of AMKR for production (mining department) Vladimir Tesliuk noted the importance of getting the limestone mining company back to work, because the production processes in the company are interrelated. “Now we are trying to do everything to strengthen the enterprise in Arkhangelsk,” he said.
Since March 2023 “ArcelorMittal Berislav” shipped for Krivoy Rog mining company almost 47 thousand tons of limestone (including stockpiles), production was almost 20 thousand tons. Pre-war limestone shipment volume exceeded 500 thousand tons per year. The projected shipment figure for 2023 is about 200 thousand tons of limestone for the production needs of AMKR.
Tesluk also added that part of the village was in ruins after de-occupation, so AMKR helps to restore its infrastructure.
ArcelorMittal Beryslav” PJSC (earlier – “Beryslav construction materials plant” JSC, established in 1994 by the transformation of the state enterprise of the same name) is mainly engaged in the limestone mining, provides up to 30% of the needs of “ArcelorMittal Kryvyi Rih” integrated iron and steel works in this raw material.
ArcelorMittal acquired Beryslavskiy plant of construction materials in July 2010.
ArcelorMittal owns the largest mining and metallurgical plant ArcelorMittal Krivoy Rog in Ukraine and also a number of smaller companies, in particular PJSC ArcelorMittal Beryslav.
“ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine, specializing in the production of long products, in particular rebar and wire rod.

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