ArcelorMittal Kryvyi Rih

ArcelorMittal Kryvyi Rih is an integrated company, a part of the ArcelorMittal Group. Its activity covers the entire production chain from iron ore mining and coke production to manufacture of finished steel products. ArcelorMittal Kryvyi Rih produces semi-finished and long products. Its main products are square billets (supplied to Turkey and countries of North Africa), rebar and wire rods (1/3 of the products are sold in the domestic market, the rest is exported to Europe, Asia, and Africa).

Location: Kryvyi Rih, Dnipropetrovsk oblast, Ukraine
Shareholders: The ArcelorMittal Group
Markets: Ukraine, Iraq, Turkey
Products: Rebar, square billets, wire rods

Production capacity

Mining and beneficiation of iron ore Underground mining — mine office (2 mines, mining shop, and crushing and sizing plant), 1,600 thousand tons of sintering iron ore
Open-pit mining — mining and processing (mine administration, crushing plants, mining transport shop, ore beneficiation plants, slime handling shop), 9,800 thousand tons of iron ore concentrate
Production of agglomerate Steel sinter shop, 3,681 thousand tons
Sinter shop 1, 4,500 thousand tons
Sinter shop 2, 5,150 thousand tons
Coke production 6 batteries, 3,840 thousand tons
Blast-furnace production 6 blast furnaces (5 are in working condition), 11,450 thousand tons
Production of steel 6 BOFs, 6,500 thousand tons
Twin hearth furnace No. 6, 1,450 thousand tons
Manufacture of rolled products: • blooming 1300
• blooming 1250
• continuous billet mill 900/700/500
• continuous billet mill 730/500
• section rolling shop No. 1: wire mill 150-1, small-section mill • 250-1, small-section mill 250-2, small-section mill 250-3
section rolling shop No. 2: small-section mill 250-4, small-section mill 250-5, wire mill 250-3
• rolling shop No. 3: small-section and wire mill 250/150

Staff and wages

Number of employees 20,763
Average wage* UAH 169,000 per annum
Workforce productivity 222 tons of steel per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

2000150010005000
2012 800 kt2012
2013 1041 kt2013
2014 991 kt2014
2015 1181 kt2015
2016 884 kt2016
2017 812 kt2017
2018 922 kt2018
20000150001000050000
2012 9763 kt2012
2013 10075 kt2013
2014 9913 kt2014
2015 10133 kt2015
2016 8956 kt2016
2017 9130 kt2017
2018 9458 kt2018
20000150001000050000
2012 10426 kt2012
2013 10268 kt2013
2014 9982 kt2014
2015 9945 kt2015
2016 10416 kt2016
2017 9940 kt2017
2018 9214 kt2018
300025002000150010005000
2012 2118 kt2012
2013 1343 kt2013
2014 1589 kt2014
2015 1794 kt2015
2016 1897 kt2016
2017 2273 kt2017
2018 2560 kt2018
6000500040003000200010000
2012 5606 kt2012
2013 5604 kt2013
2014 5529 kt2014
2015 5507 kt2015
2016 5972 kt2016
2017 5790 kt2017
2018 4513 kt2018
70006000500040003000200010000
2012 6440 kt2012
2013 6476 kt2013
2014 6310 kt2014
2015 6089 kt2015
2016 6316 kt2016
2017 5812 kt2017
2018 4622 kt2018

Indicative sales structure by products in 2018

Indicative sales structure by markets in 2018

* structure of sales volumes, metric tons

Financial performance, $ million

 201320142015201620172018
Sales353130872122206924882499
EBITDA242511341362464655
EBITDA margin6.9%16.5%16.0%17.5%18.7%26.20%
Net income-190-9964106190350
Net income margin -5.4% -3.2%3.0% 5.1% 7.6%13.99%
CAPEX145231181184235337

Key facts

2018-2022

ArcelorMittal Kryvyi Rih expects to realize massive investment program. CAPEX will amount $1.8 bln of reinvested own funds and €350 mln of EBRD loan during 2018-2022.

2019

ArcelorMittal Kryvyi Rih made a commitment to cut emissions of harmful substances into the environment to the EU standards till 2025. Amount of environmental investments in 2019 is expected about UAH 500 mln.

ArcelorMittal Kryvyi Rih plans to raise steel production volume by 26% to 5.8 mln tonnes, according to the company management.

In 2020

ArcelorMittal Kryvyi Rih is going to modernize blast furnace #9 in 2021. Modernization project will aimed on improving environmental performance, increasing the use of pulverized coal, reducing the coke equivalent and, accordingly, the cost of iron. As a result of the project, the capacity of the furnace will increase to 10 ths tonnes of pig iron per day and up to 12 ths tonnes using pellets. Blast furnace #9 is the biggest in Europe and produces about 50% of company`s pig iron production volume.

2019

ArcelorMittal Kryvyi Rih to build pelletizing factory with capacity of 5 mln tonnes of pellets per year.

In 2018

ArcelorMittal Kryvyi Rih invested UAH 600 million in environmental activities. These include reconstruction of gas-purification facilities, commissioning of new vacuum extraction systems at the beneficiation plant, and repair of power equipment.

In late 2018

ArcelorMittal Kryvyi Rih extended the validity period for special permits for the use of subsoil until 2038. The company got an opportunity to continue mining iron ore in two main quarries: open pit No. 3 (balance reserves within the open pit contour — 322.7 million tons, off-balance reserves — 13.5 million tons) and open pit No. 2-bis (balance reserves within the open pit contour — 168.8 million tons, off-balance reserves — 52.7 million tons).

In 2018

Two new continuous casting machines (CCMs) were built. The amount of investment totaled $144 million. In 2019, hot tests of the CCMs will begin.

In 2018

Construction of two new coke-oven batteries, No. 5 and No. 6, was completed. The amount of investment totaled $160 million. Due to this project, the plant now produces enough coke to meet its own needs.

In 2018–2019

ArcelorMittal Kryvyi Rih has been reconstructing the small-section mill 250-4. The reconstruction works are estimated at $55 million. They are supposed to facilitate improvement of quality and expansion of the product range.

Since 2017

ArcelorMittal Kryvyi Rih has been reconstructing its sinter shop No. 2. The cost of the project is more than $150 million. The project is expected to be completed in 2020. Its purpose is to reduce emissions of dust and gases, increase technical reliability of equipment, capacity of the shop, and to decrease energy costs.

In 2018

A horizon-1 of 135 meters with a new ore transportation complex was put into operation at Artem mine, owned by ArcelorMittal Kryvyi Rih. The amount of investment totaled $44 million. The project will make it possible to increase the extraction of iron ore by underground mining.