Business news from Ukraine


PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in January-November this year increased production of rolled iron ore by 3.3% compared to the same period last year – up to 10 million tonnes.
An enterprise representative told Interfax-Ukraine about 900,000 tonnes of concentrate were produced in November.
Earlier, the general director of ArcelorMittal Kryvyi Rih, Mauro Longobardo, reported that ArcelorMittal Kryvyi Rih in 2020 increased production of iron ore concentrate by 8.3%, to 10.7 million tonnes, ore extraction increased by 4.5%, to 25.6 million tonnes.
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.
ArcelorMittal owns the largest mining and metallurgical plant in Ukraine ArcelorMittal Kryvyi Rih and a number of small companies, in particular, PJSC ArcelorMittal Beryslav.

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PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in January-June 2021 reduced the output of general rolled products, according to operational data, by 2.1% year-over-year, to 2.3 million tonnes.

A representative of the company told Interfax-Ukraine that steel production during this period increased by 1.4%, to 2.45 million tonnes, cast iron by 10.4%, to 2,790 tonnes. At the same time, sinter production increased by 7.6%, to 4.95 million tonnes.

In June, about 390,000 tonnes of rolled products, some 420,000 tonnes of steel, some 470,000 tonnes of cast iron, some 880,000 tonnes of sinter were produced.

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PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) is considering the possibility of putting into circulation 1,200 new rail cars in 2021-2022, while the company’s own car fleet will increase by 1.5 times.
According to a press release from the company, this will allow for faster deliver products to customers and timely supply raw materials for the plant.
Virdy Bikram, the chief procurement officer of the company, noted that several factors are pushing the company to the decision to purchase new cars on a large scale.
“Currently, we are increasing the shipments of our products for export. At the same time, we are not quite satisfied with the technical condition of the wagon base in Ukraine. The renewed wagon fleet will ensure safe and efficient transportation of our products to Ukrainian ports. We will be able to plan our logistics regardless of the situation on the railroad market/transportation and availability of wagons. This will help reduce the cost of delivery of outgoing and incoming goods. In addition, own wagons are cheaper – the approximate payback period is 3-4 years,” he said.
According to him, according to the company’s estimates, initiatives to write off high-sided cars that exceed the standard service life, presented to the government, could lead to a shortage in the market and a large jump in transportation prices. Also, some manifestation of the shortage of wagons can traditionally be expected in the summer-autumn period due to the revival of the construction cargo market.
“Therefore, we would like to count on our own modern wagons and be more flexible in terms of working with Ukrzaliznytsia and freight operators,” the top manager summed up.



The Ministry for Development of Economy, Trade and Agriculture of Ukraine and PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) signed a memorandum for the implementation of new investment projects: the company plans to invest about $1 billion in new projects for environmental modernization and production development.
According to a press release from the ministry, the memorandum was signed on Wednesday by Minister Ihor Petrashko and ArcelorMittal Kryvyi Rih CEO Mauro Longobardo.
The Steel Billion, a new investment program of ArcelorMittal Kryvyi Rih, will focus on environmental impact reduction, company sustainable development and introduction of circular economy principles: efficient use of resources, recycling and waste utilization.
“ArcelorMittal is a large investor, exporter and employer. Today we agreed that the company would significantly increase investments in Ukraine, and introduce advanced, environmentally friendly technologies in steel making, which is one of our strategic economy sectors. We expect that investment activity in our country will recover gradually after the crisis of 2020, and cooperation with the global largest steel producer will become an incentive for investors to contribute to Ukraine,” Petrashko said
Longobardo said that during 15 years of operation in Ukraine, the company has invested over $5 billion in production development, and now offers the new program Steel Billion, according to which about $1 billion will be invested into environmental modernization.
“We continue to implement large investment projects and are gradually transforming ArcelorMittal Kryvyi Rih into a modern European production. Steel Billion is our new program for Ukraine. By this program, we will finance green steel-making technologies and de-carbonization projects. This fully complies with ArcelorMittal Group’s strategy to become carbon-neutral. Actually, steel already has a lower carbon footprint compared to other materials: no other material has the same recovery and reuse capacities. The initiatives to be confirmed under the Memorandum today are a step forward in Ukraine’s industry. We count on cooperation and comprehensive support of the government on this way,” Longobardo said.
On April 14, Prime Minister of Ukraine Denys Shmyhal met with ArcelorMittal Kryvyi Rih Board Chairman Lakshmi Mittal. The meeting was attended by Deputy Prime Minister of Ukraine, Minister for Strategic Industries of Ukraine Oleh Urusky, Petrashko and representatives of ministries.
The head of the Ukrainian government welcomed the signing of a memorandum between the Ministry of Economy and the enterprise to support investment projects for the period 2022-2032. Shmyhal said that the signing of the memorandum was made possible thanks to the law initiated by President of Ukraine Volodymyr Zelensky on state support for projects with significant investments.
“Together with the President and Parliament, we launched effective tools that enhance the investment attractiveness of Ukraine. Today’s memorandum is one of the first successful examples when the large international company plans to use the appropriate tools and increase investments and the number of jobs in Ukraine,” Shmyhal said.
The head of government added that according to the memorandum, a significant part of the investments will relate to projects that reduce the negative impact on the environment. At the same time, the Prime Minister thanked the company’s management for socially important initiatives, the development of medicine and the support of the communities where the enterprise is located.
“The government calls on socially responsible business to join state initiatives in Ukraine, when investors become not only business partners of the state and communities, but also actively participate in the development of the region where they work. The government, for its part, is ready to comprehensively contribute to the further development of mutually beneficial relations and will continue work to improve the investment climate,” the Prime Minister said.
The Memorandum provides for the following areas of development and investment: green metallurgy, which contributes to less pollution and reduced carbon footprint; sustainable development of iron ore mining – continuation of mining activities for 30 years; creation of new industries, in particular rolling and bar mills; modernization of existing facilities; circular economy and waste management (utilization of biomass, streamlining of CO2 emissions, processing of slags and sludge).

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PJSC ArcelorMittal Kryvyi Rih, following the results of its activities in 2020, slightly reduced sales of products in Ukraine due to the coronavirus pandemic.
According to an interview of the director of the sales department in Ukraine and the CIS, Yevhen Chumachenko, published in the Metalurg corporate publication, according to preliminary estimates, last year the company on the domestic market slightly reduced sales to the indicators of the previous year as a result of the pandemic and a lockdown in the first half of the year.
“The purchasing activity of our clients in general and construction companies, in particular, during this period significantly decreased. The most significant decrease in the volume of purchases was made by small and medium-sized construction companies, in which the majority of workers are from other regions of the country. People left before the lockdown and then did not have the opportunity to return to objects. The demand began to recover only from June, in July-October it remained at a fairly high level. In November, the buying activity seasonally, as well as against the background of fears of a second lockdown in December, slightly decreased. However, if to look in general, then for the second half of the year we partially managed to make up for the losses of the first half of the year,” he said.
According to him, ArcelorMittal Kryvyi Rih managed to keep its market positions.

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The international vertically integrated pipe and wheel company Interpipe (Dnipro) has appointed Artem Poliakov, the former director general of PJSC ArcelorMittal Kryvyi Rih, as well as the ex-vice president of ArcelorMittal Group, a new director general.
According to a press release from the company, Poliakov will take office on January 1, 2021.
“Fadi Hraibi who led Interpipe since 2016 will chair the board of directors of the company,” the report says.
“Under the leadership of Mr. Hraibi Interpipe implemented the transformation of its operating model, significantly consolidated its positions at the export markets, and entered new segments of production and sales of premium products. Interpipe also restructured its debt obligations, strengthening its financial position to the level of leaders in the Ukrainian corporate and industrial sectors,” the press release reads.
“Artem Poliakov has long-standing experience in managing large-scale industrial companies. In particular, he served as the CEO of PJSC ArcelorMittal Kryvyi Rih, and hold also the post of Vice President of ArcelorMittal Group. In addition, he worked for Lafarge Group,” according to the document.