ArcelorMittal Kryvyi Rih allocated over UAH 650 million to support Ukraine during the war

In the two years since the beginning of the full-scale invasion of the Russian Federation, the company has implemented a number of humanitarian projects

ArcelorMittal Kryvyi Rih (AMKR), one of the largest steel mills in Europe, has faced a decline in production and loss of its logistics chains during the two years of the Great War. Due to attacks on the energy infrastructure, the company experienced blackouts and was repeatedly directly hit by enemy fire. However, since the first days of the full-scale invasion, AMKR has continued to systematically support the state and its citizens.

Financial support of the state

Over the two years of war, the company has allocated more than UAH 650 million to provide humanitarian support to Ukraine and overcome the consequences of Russian aggression. In particular, in 2022-2024, UAH 23 million was allocated to help IDPs and local communities. ArcelorMittal Kryvyi Rih also remains one of the largest taxpayers in the country. Last year, payments to budgets of various levels amounted to UAH 4.1 billion. In 2022, this amount amounted to UAH 8.8 billion, and AMKR also paid $75 million in advance for the mineral extraction tax.

The plant’s operation is important not only for the country’s economy but also for defense against Russian aggression. ArcelorMittal Kryvyi Rih is to be commended for retaining its staff, avoiding layoffs and keeping its production equipment in good working order. Despite the war, this year the steelmaker plans to increase utilization from 30% to 50% and increase capital investments by almost 20% to $155 million.

Help in the first year of war

For ArcelorMittal Kryvyi Rih, the first year of the great war was marked by assistance in the defense of the city, support for IDPs and humanitarian projects.

The company’s first contribution to the defense of Kryvyi Rih was assistance with special equipment, materials, and fuel for the construction of fortifications, and some other basic equipment, such as computers and thermal imagers, were also provided. The total amount of this support at the beginning of the great war was over UAH 34 million.

In particular, for the first time since World War II, the company was forced to return to manufacturing anti-tank and anti-track hedgehogs. In 2022, its workshops produced more than 5,000 of these barriers – 70% of all those installed in Kryvyi Rih.

In addition, the company allocated UAH 6.0 million to help the city restore the dam of the Karachunivske Reservoir after rocket attacks in September 2022. The company’s specialists quickly produced shandors for the destroyed dam from steel structures and delivered them to their destination.

The company’s special equipment is currently working on the construction of defensive structures and rebuilding the destroyed infrastructure. AMKR’s unique Liebherr crane was used to restore a large flagpole in Kherson and a bridge over the Davidovy Brid River.

After the start of the full-scale invasion, the city hosted a large number of people who were forced to flee their homes due to the fighting. According to the city authorities (as of November 2023), Kryvyi Rih has sheltered more than 80 thousand people from 15 regions, including Kherson and Donbas, and more than 120 thousand people have been in transit. AMKR supported the city’s efforts to meet the needs of IDPs, in particular, by providing food for IDPs who were initially accommodated in schools, kindergartens, etc.

«The most difficult thing for the enterprise in the first year of the war was to ensure production at the highest possible level, to rebuild logistics chains from scratch, both for the import of raw materials and the export of finished products after the aggressor blockade of the Black Sea ports and despite unfavorable conditions on world markets. The plant survived thanks to the dedication and professionalism of our team at all levels, as well as the financial support of the corporation. It survived shelling and blackouts and retained its production facilities and staff,» said Volodymyr Gaidash, Communications Director of PJSC ArcelorMittal Kryvyi Rih.

The war is equally exhausting for those who have fled their homes and are trying to adapt to a new life, and for those who are hosting the displaced and doing their best to help with housing, food, clothing, etc. ArcelorMittal Kryvyi Rih provided its Dzherelo health resort for employees and their families who lived in Arkhangelske, where ArcelorMittal Berislav limestone mining facility is located, and residents of other areas that were in the active hostilities zone or in close proximity to the contact line. In addition, with the company’s assistance, a humanitarian cargo was delivered to the city from France, which was collected by ArcelorMittal Research & Development employees. The plant took over the organization of logistics and allocated funds for its delivery. Then 7 tons of aid arrived, including hygiene products, children’s and medical beds, clothes, etc. The cargo was handed over to the 39th Women’s Self-Defense Hundred charity organization, which was then in charge of distribution.

«In the first days of the war, the company did everything possible to protect our people. Every decision was motivated by the desire to protect our employees and their families. This included a whole range of steps: from minimizing production to avoid physical threats to workers to temporarily evacuating as many people as possible during the hottest phase of the war. 1000 family members of the company’s employees were temporarily evacuated to Western Ukraine and Poland. The company’s expenses for temporary accommodation of employees’ families amounted to about UAH 50.0 million,» said Kateryna Zaloznykh, Acting HR Director of PJSC ArcelorMittal Kryvyi Rih.

Attracting international assistance

ArcelorMittal is a global corporation that has expanded its support for Ukraine since the outbreak of full-scale war. Thanks to the UNICEF fundraising platform, the company’s employees from all over the world donated more than €2.5 million to help Ukrainians, and ArcelorMittal doubled this amount.

Both the corporation and AMKR allocated funds for the purchase and delivery of medical supplies and equipment for hospitals in Kryvyi Rih and other regions. The list was compiled by doctors, and the international status of the corporation helped to collect the necessary items in different European countries. In particular, in May 2022, hospitals in Lviv region received a $226,000 medical humanitarian aid package.

Rebuilding homes in the de-occupied territories

The corporation also includes ArcelorMittal Beryslav, a limestone producer for the construction and steel industries located in Arkhangelske, Kherson region. Due to the enemy offensive, the company stopped working in February 2022, and the territory was occupied for 7 months. In October 2022, the village was liberated by the defenders of Ukraine.

The war left behind destroyed homes, buildings, and infrastructure, and the company’s industrial site was severely damaged. Nevertheless, the de-occupied territories were recovering and people who needed support were returning.

AMKR helped employees from Arkhangelske rebuild their homes, which were partially destroyed by the hostilities. The plant also contributed to the restoration of the Teremok kindergarten in the village and the building of the Arkhangelske Starostat (village council), a local administrative and social service center. More than UAH 2 million was allocated for this purpose in 2023.

Overcoming the consequences of the terrorist attack at the Kakhovka HPP

Last year, the priority area of assistance, the main and most expensive item of support for Ukraine for the AMKR, was the urgent restoration of municipal infrastructure after the tragedy in Kakhovka.

Kryvyi Rih also felt the consequences of the Russian troops’ blowing up and destroying the Kakhovka hydroelectric power plant dam. A large industrial city with a population of more than 800,000 people could have been left without water, as it was 70% supplied by the Kakhovka reservoir through the Pivdenne reservoir.

The terrorist attack at the Kakhovka HPP took place on June 6, 2023. On the same day, Ukraine’s largest steel mill reacted immediately by limiting water consumption and pausing a number of processes. The company suspended steelmaking and rolled steel production, leaving only blast furnace, coke and chemical production and mining operations in operation. To help Kryvyi Rih solve the unprecedented challenge of restoring water supply, AMKR, in cooperation with local authorities, implemented two large-scale infrastructure projects in a short time.

The first task was to expand the Saksahan River intake channel to increase the capacity of water transportation from the KRES reservoir to the Pivdenne reservoir.

The second project is the construction of a 4-kilometer water pipeline from the Ingulets River to the Pivdenne Reservoir from scratch using the AMKR network.

This step helped to provide water to almost a third of the city.
The construction was carried out around the clock by employees of the plant and contractors and was completed in a record 20 days. This pace was achieved because the pipes and pumps used for the work were intended for the implementation of a major investment project of the company – the Third Map tailings dump. However, AMKR deliberately postponed the work for the benefit of Kryvyi Rih residents.

In total, ArcelorMittal Kryvyi Rih allocated UAH 225 million for the water supply system at all its stages. After the launch of the new waterway, the priority in restoring water supply was given to the city’s residents. First, the company filled the Pivdenne reservoir, as the city was losing tens of thousands of cubic meters of water every week due to heat and evaporation. When this stage was completed, the selection process for the plant began so that it could resume production of steel and rolled products.

«The timing of this project is unprecedented in Ukraine – 4.5 km of the pipeline was built in 21 days. Despite the alarms, the design and implementation work was carried out 24/7. The construction was carried out in close coordination with the city’s defense council,» says Mykola Halushkin, Production Director of the Production Administration.

Comprehensive support for employees and their families

Since the beginning of the full-scale invasion of Ukraine, 3.2 thousand employees of ArcelorMittal Kryvyi Rih have joined the Armed Forces of Ukraine. The company joined forces with the Trade Union of Steelmakers and Miners of Ukraine to help purchase the protection needed by the company’s employees who went to defend the country. Personal protective equipment (helmet, bulletproof vest) was purchased for UAH 34 million.

Over two years, AMKR has provided financial assistance to the families of employees killed in the war for more than UAH 62 million. In addition, the company allocated over UAH 1.3 million to help employees whose homes were damaged by rocket attacks.

Many of the company’s employees have been volunteering to support the military and civilians for two years of the full-scale invasion.

In particular, after the destruction of the Kakhovka hydroelectric power plant dam, employees quickly collected food and other necessities for the residents of Kherson Oblast, and the cargo from Kryvyi Rih was quickly delivered to the affected region with the support of the plant. In addition, AMKR buses were used to evacuate people from the area.

ArcelorMittal Kryvyi Rih continues to support Ukraine. The company remains a partner of the communities in eliminating the consequences of Russian aggression, humanitarian and social initiatives. The plant continues to restore and modernize its production facilities to meet the needs of the times, so that it can continue to contribute to the state and local budgets. AMRK has also repeatedly demonstrated its readiness to participate in the post-war reconstruction of the country