News Companies ArcelorMittal Kryvyi Rih 1140 25 December 2024
The enterprise is loaded at 30% steel and 70-75% mining capacities
PJSC ArcelorMittal Kryvyi Rih (AMKR), which is located in the frontline zone, faces significant challenges due to the war. Frequent shelling of the city and problems with electricity supply have a significant impact on production processes. In the first quarter of 2025, the company plans to operate only one blast furnace due to the difficult economic and security situation. Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, said this in an interview with Interfax-Ukraine.
In the middle of the year, thanks to favorable conditions, the company was able to return to using 50% of its steelmaking capacity (two blast furnaces), but currently it is operating at 30%. By the end of the year, AMKR expects to produce about 1.6 million tons of steel products, including 1.15 million tons of finished rolled products, and 2.16 million tons of pig iron. Mining capacities are consistently utilized at 70-75%, which allows the company to produce 650-700 thousand tons of iron ore concentrate with 65% iron content every month.
The production plan for 2025 envisages a decrease in production compared to the pre-war years. According to the CEO of AMKR, in the first quarter, the company will be able to maintain only one blast furnace. This is due to high electricity tariffs and its periodic unavailability due to attacks on Ukraine’s energy infrastructure.
“Our products have a high cost price due to high electricity tariffs. This makes them less competitive in the market,” Longobardo said.
Problems with energy supply also affect the smooth operation of equipment. Steel facilities are sensitive to power surges, and outages can lead to serious damage to equipment.
Despite the difficulties, AMKR continues to actively export iron ore concentrate, most of which was previously used for its own steel production. These volumes are now being exported, particularly to China.
Starting in the second quarter of 2025, the company plans to restart two blast furnaces, which will allow it to reach an annual output of 2.5-2.6 million tons of steel products. Mining production is expected to remain stable at 650-700 kt of concentrate per month if market prices remain in the range of $110-120 per ton.
Due to the pressure of a number of negative factors, including rising electricity tariffs, logistics costs, lack of qualified personnel due to mobilization, etc., the Ukrainian industry is losing competitiveness both in domestic and foreign markets. Unreasonable tariff increases by state monopolies in the railroad transportation and electricity markets threaten to lose export and tax revenues from heavy industry and thousands of jobs in the frontline regions.
As GMK Center reported earlier, the increased mobilization increases the staff shortage at ArcelorMittal Kryvyi Rih. As of now, more than 3,000 employees of the company have been mobilized into the Armed Forces of Ukraine. In July of this year, the company was forced to suspend production due to an inspection by the territorial center of acquisition and social support, as the employee who sets up the rolling mill and is the only specialist on the shift was taken to the territorial center of acquisition and social support.
