ArcelorMittal Kryvyi Rih plans to increase investments by almost 20% in 2024

In 2024, ArcelorMittal Kryvyi Rih intends to increase its capital investments by almost 20% to $155 million. This year, they amounted to $130 million, said Olena Bizyaeva, acting CEO of AMKR, during a visit to the company by First Deputy Prime Minister and Minister of Economy Yulia Sviridenko. This was reported by Metallurg newspaper.

According to Olena Bizyayeva, in 2023, AMKR plans to produce more than 1.4 million tons of iron, 1 million tons of steel and 0.8 million tons of rolled products.

During the meeting with the First Deputy Prime Minister, the parties discussed ways to increase production and the necessary measures that the government can take to facilitate its growth. Among the options for state support were the possibility of state orders for products from domestic enterprises, booking workers, overcoming the shortage of personnel in the labor market, increasing the capacity of logistics export routes, increasing metal exports by sea and insuring ships against military risks.

According to Yulia Svyrydenko, before the invasion, the iron and steel sector contributed about 10% of GDP and generated about a third of foreign exchange earnings from all merchandise exports.

«This industry has always been and remains export-oriented. Over 80% of steel products were shipped abroad. The most important thing that the government can do for the Ukrainian steel industry now is to ensure unimpeded exports by sea. We have an important achievement in this area. In September, the first ships with metal were sent through the temporary sea corridor. And in November, we recorded a 70% increase in exports by sea. Metal exports are starting to work. This means that steelmakers and miners will have jobs, and the Ukrainian budget will receive additional taxes,» she noted.

The Minister of Economy also added that the authorities are currently working on the complete unblocking of maritime logistics and the launch of the vessel insurance mechanism, which has already been developed

«The extent to which logistical problems are resolved and the stabilization of the hostilities will remain the main factors that will determine whether the company’s stated plans will be fulfilled. Currently, the ability of steel mills to produce products is limited by the capacity of logistics routes, and investment inflows directly depend on the security situation in the country,» GMK Center analyst Andriy Glushchenko noted.

In the first half of 2023r, ArcelorMittal Kryvyi Rih produced 390 thousand tons of steel in 2023, which is 43% of the same period in 2022. In mid-June 2023, due to problems with the supply of industrial water after the Russians blew up the Kakhovka hydroelectric dam, the steelmaker reduced production to 15-20% of the pre-war level.

In 2022, ArcelorMittal reduced its rolled steel production by 76.1% compared to 2021 – to 1.1 million tons. Pig iron production decreased by 70% y/y – to 1.6 million tons, and steel production decreased by 75.6% y/y – to 1.2 million tons.

As GMK Center reported earlier, in 2024, AMKR plans to increase capacity utilization from 30% to 50%. The plant expects to launch two blast furnaces.