News Companies ArcelorMittal 03 February 2023
The increase in production capacity of the plant is also influenced by the stability of logistics routes
ArcelorMittal Kryvyi Rih expects to return to the level of production at 50% capacity in case of stabilization of energy supply and logistics routes. This was announced by the company’s CEO Mauro Longobardo during the Ukrainian-Luxembourg business forum «Rapid recovery of Ukraine», the newspaper Metalurg reports.
It is noted that ArcelorMittal did not stop working in Ukraine even during the war, a few kilometers from the front. The plant remains the largest foreign investor in the Ukrainian economy. Over 17 years of operation, the company’s investments have exceeded $10 billion.
“In the first months after the start of the Russian full-scale invasion of Ukraine, ArcelorMittal stopped production. Later, it was not possible to restore it to full capacity, because we faced the problem of exporting products through the blocked Black Sea ports. The consumption of products in Ukraine decreased due to the war, so we needed to find new sales markets. We have done a lot of work to get the new system of supply chains and product transportation up and running,” said Mauro Longobardo.
According to the CEO of the enterprise, the establishment of supply chains was the main obstacle to the operation of the plant.
“I can say that if the supply of electricity is stable and we maintain the logistical possibility of transporting products through Poland or the south of Ukraine to Romania, we will be able to be more efficient and return to the production level of 50% of our capacity,” summarized the CEO of ArcelorMittal Kryvyi Rih .
As GMK Center reported earlier, in 2022, ArcelorMittal Kryvyi Rih reduced the production of rolled products by 76.1% compared to 2021 – to 1.1 million tons. The production of pig iron decreased by 70% compared to 2021 – to 1.6 million tons, and steel – by 75.6%, to 1.2 million tons. The production capacity of ArcelorMittal during 2022 was loaded by no more than 20-25% due to a decrease in export opportunities and restrictions in energy supply.
ArcelorMittal Kryvyi Rih is an integrated steelmaking company, a part of the ArcelorMittal Group. Its activity covers the entire production route from iron ore mining and coke production to manufacture of finished metal products. The Company produces semi-finished and long products and rolled sections.