Business news from Ukraine

“ArcelorMittal Kryvyi Rih” cuts production by two thirds in 2022

ArcelorMittal Kryvyi Rih PJSC (AMKR, Dnipropetrovsk oblast) has cut production of metallurgical coke at its coke-chemical division by 68.1% in 2022 compared with the previous year – to 922 thousand tons.
A company representative told Interfax-Ukraine news agency that in December the company produced 41,000 tonnes of metallurgical coke.
At the same time in 2022 the gross coke output at AMKR amounted to 1.060 mln tonnes, including 47 thnd tonnes in December.
Coke production at ArcelorMittal Kryvyi Rih for 2021 increased by 9.2% to 2.890 million tonnes, including 250 thousand tonnes produced in December.
In 2022 the company supplied over 1.4 million tonnes of coal concentrate, including 469 thousand tonnes of domestically mined coal, 390 thousand tonnes from Russia (pre-war), 65 thousand tonnes from Kazakhstan, 54 thousand tonnes from Poland, 15 thousand tonnes from the Czech Republic, 218 thousand tonnes from the USA and 192 thousand tonnes from Australia. In December, the AMKR supplied 108,000 tons of coals, including 72,000 tons from domestic production, 21,000 tons from Poland, 11,000 tons from the United States and 4,000 tons from Australia.
As Ukrainian coke plants reported, in 2022 the production of gross coke with 6% moisture decreased by 59% compared to the previous year, to 3.91 million tons, including 3.354 million tons of metallurgical coke. In 2022, 4.594 million tonnes of coal concentrate were supplied to the domestic CCPs, including 3.158 million tonnes produced in Ukraine.
“ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, in particular rebars and wire rod.
ArcelorMittal owns Ukraine’s largest mining and metallurgical plant, ArcelorMittal Kryvyi Rih, and a number of smaller companies, in particular ArcelorMittal Beryslav PJSC.

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“ArcelorMittal Kryvyi Rih” hopes to increase production to 50% of plant’s capacity

ArcelorMittal Krivoy Rog PJSC (AMKR) Krivoy Rog Mining and Metallurgical Plant is hoping for an improvement in the power supply situation in the first half of this year and an increase in production from the current 25% to 50% of the plant’s capacity, the plant’s CEO Mauro Longobardo said.
“We can’t produce more than 25 percent because we don’t have enough energy. Once we have stable energy, we can increase production … and get to 50%,” he said on the sidelines of a business forum on the rapid recovery of Ukraine in Luxembourg, organized by the Ukrainian-Luxembourg Business Club.
Longobardo clarified that the company is currently operating at 25 percent for both ore and steel production, and consumes about 125 MW, compared to the pre-war normal consumption of about 450 MW.
The CEO also added that AMKR started importing electricity after the government’s recent decision and is now happy with the result, although the price of imports adds to the negative impact on the cost of production.
According to him, despite the low utilization rate, the entire team of 26,000 employees is retained, of which about 10,000 to 12,000 are employed in production depending on the day, but assistance is also provided to others. “We are investing in keeping all of our people during this year,” the general manager said.
He said that with an adequate power supply, a further 50 percent capacity limitation is already due to logistical problems. As Longobardo pointed out, AMKR is actively developing new routes alternative to the pre-war sea routes, but tentatively the new destinations to Poland and southern Ukraine will only allow for 50 percent production.
“We just need to test them when we have 50 percent available,” the general manager added.
According to him, without the resumption of work of the main ports of Ukraine, the combine will not be able to export products or provide imports of coal. Longobardo clarified that now AMKR works entirely on Ukrainian coal, as the work of the route of traditional coal imports from Kazakhstan from another “subsidiary” ArcelorMittal is currently interrupted.
At the same time, he stressed that there are other obstacles on the way to increasing production to 50%. First, Longobardo explained, the power supply must be reliable, since the plant has three blast furnaces, of which one is still operating. Going to 50% would mean working with two blast furnaces, since the third one is the largest, and a sudden stoppage of the furnace in case of power supply problems is fraught with damage.
The second major problem the general manager cited was rising production costs and logistics. “Cost is already killed. When I tell you logistics are possible, it’s true. But it’s $100 per ton more expensive than what I was paying before,” Longobardo noted.
He clarified that previously the transport shoulder to the port of Nikolaev was 250 km, there were also river deliveries, whereas now it is 1500 km to Gdansk and more costs for transshipment due to the different gauge in Ukraine and Europe.
“ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, particularly rebar and wire rod.
As previously reported, in 2022, the plant reduced the output of rolled steel by 77% compared with the previous year – up to 1.1 million tons, steel – by 76.3% to 1.2 million tons, iron – by 71% to 1.6 million tons.
Iron ore production fell last year by 56%, to 11.6 million tons, and concentrate production fell by 57.2%, to 4.2 million tons.

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“ArcelorMittal Kryvyi Rih” at its coking division reduced production of metallurgical coke by 62.6%

Kryvyi Rih Mining and Metallurgical Plant PJSC “ArcelorMittal Kryvyi Rih” (AMKR, Dnipropetrovsk region) at its coke chemical division in January-August of this year reduced the production of metallurgical coke by 62.6% compared to the same period last year – up to 740 thousand tons .

A representative of the company told Interfax-Ukraine that in August the company produced 44,000 tons of metallurgical coke.

At the same time, in January-August 2022, the production of 6% moisture gross coke at AMKR amounted to 851 thousand tons, including 51 thousand tons in August.

Coke production at ArcelorMittal Kryvyi Rih for 8 months-2021 increased by 12.1% – up to 1.976 million tons, including 260 thousand tons in August last year.

In January-August 2022, 263 thousand tons of domestically produced coal, 390 thousand tons from Russia (before the war), 65 thousand tons from Kazakhstan, 27 thousand tons from Poland, 15 thousand tons from the Czech Republic, 208 thousand tons from the USA and 134 thousand tons from Australia. In August, AMKR delivered 48,000 tons of domestic coal, 18,000 tons from the United States, and 8,000 tons from Australia.

As reported, in January-August this year, Ukrainian Coke Plants reduced the production of gross coke with 6% moisture by 55.2% compared to the same period last year, to 2.94 million tons. Including for 8 months-2022, the production of metallurgical coke amounted to 2.52 million tons. At the same time, 257.7 thousand tons of gross coke were produced in August, including 221 thousand tons of metallurgical coke.

Ukraine in 2021 reduced the production of coke by 1.3% compared to 2020 – to 9.543 million tons.

“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.

ArcelorMittal owns the largest mining and metallurgical plant in Ukraine, ArcelorMittal Kryvyi Rih, and a number of small companies, in particular, PJSC ArcelorMittal Berislav.

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ARCELORMITTAL KRYVYI RIH GRADUALLY RESTORES PRODUCTION

PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) is gradually restoring production after a forced shutdown in March this year.
According to the company, during the visit to the enterprise, head of Dnipropetrovsk regional military administration Valentyn Reznichenko, chairman of Dnipropetrovsk regional council Mykola Lukashuk and head of Kryvy Rih military administration Oleksandr Vilkul discussed the restart of metallurgical production.
At the same time, it was stated that one blast furnace, two coke oven batteries, three pouring machines, a rolling mill, a converter and one of the three continuous casting machines are currently operating at the enterprise.
“One of the largest mining and metallurgical plants, ArcelorMittal Kryvyi Rih, resumes work. It is still a long way before the launch of all capacities, but the company has embarked on this path. The company is building new logistics and looking for new sales markets. Thousands of employees of the plant have a salary, and the budget – taxes,” the head of Dnipropetrovsk regional military administration said.
Vilkul, in turn, stated that important production facilities had resumed work in the industrial sector over the past two weeks.
Serhiy Lavrynenko, Deputy General Director for Metallurgical Production at ArcelorMittal Kryvyi Rih, added that thanks to the support of the parent company ArcelorMittal, the government of Ukraine, Ukrzaliznytsia managed to restore part of the production operations at ArcelorMittal Kryvyi Rih.
“We are optimistic… We hope to arrange coal supplies in sufficient quantities to restart another blast furnace in the near future, and then increase the level of rolled products production,” Lavrynenko said.
At the same time, it is recalled that in early March, the company’s management decided to stop all blast furnaces of the enterprise and the processes of metallurgical production. The coking plant is now in a state of hot downtime – this is a necessary measure to avoid causing irreparable damage to the equipment. The work of the mining department did not stop after the Russian invasion, although the level of ore production was reduced due to interruptions in the operation of logistics routes and the shutdown of blast furnaces, the company said.
However, since April, the plant has been gradually resuming production processes. The restart began with the return to operation of blast furnace No. 6, it resumed operation on April 9.

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ARCELORMITTAL KRYVYI RIH RESUMES PRODUCTION, SHIPMENTS DUE TO COOPERATION WITH UKRZALIZNYTSIA, GOVT ASSISTANCE

PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) has resumed production and begins shipping to foreign consumers thanks to cooperation with Ukrzaliznytsia and attention to the enterprise from the government of the country.
According to head of JSC Ukrzaliznytsia Oleksandr Kamyshin, the railway continues to work according to the schedule, and now ArcelorMittal Kryvyi Rih is joining the work on schedule, which resumes work and launches the first furnace.
“Together with the railway team today at the plant we are meeting the first tonne of commercial pig iron. Let me remind you that three weeks ago, together with Minister of Infrastructure (Oleksandr) Kubrakov and First Deputy Prime Minister (Yulia) Svyrydenko, we were already in Kryvy Rih and we discussed with the management of the steel plant how the railway can help launch the plant. I am glad to be with the team of the steel plant at such a historic moment today. Let me remind you that the last time the Kryvy Rih iron and steel works was launched immediately after the Second World War,” the head of Ukrzaliznytsia wrote.
At the same time, he noted that the workers of the metallurgical plant receive work, “and, therefore, wages, the economy – taxes, and the railway – the same tonne of cargo that we have always fought for.”
In turn, General Director of ArcelorMittal Kryvyi Rih Mauro Longobardo, in an interview with the Kryvy Rih television company, noted that after the suspension of the enterprise’s activities due to hostilities, work in the mining sector continued at 30% of normal capacity. At the same time, work was suspended in the underground mine of the plant due to fear of a sudden power outage.

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ARCELORMITTAL KRYVYI RIH INVESTS UAH 258 MLN IN KRYVY RIH

PrJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in 2021 invested more than UAH 258 million in social initiatives in Kryvyi Rih and the region.
According to a press release on Friday, this is the company’s total contribution to large-scale projects in four areas – healthcare, education, cooperation with local communities, and the development of Kryvy Rih.
Summing up the results of 2021, CEO of ArcelorMittal Kryvyi Rih Mauro Longobardo said that the company has identified key areas for the implementation of social projects and the creation of a comfortable environment in Kryvy Rih, which is fully consistent with the development priorities of the city and local communities.
Investments in healthcare amounted to UAH 158 million, in the development of Kryvy Rih – UAH 70 million, in education – UAH 23.5 million, and in the development of local communities – UAH 7.1 million.
ArcelorMittal Kryvyi Rih is the largest manufacturer of rolled steel in Ukraine. It specializes in production of long products, in particular, rebar and wire rod.

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