Steel anniversary: ​​90 years of ArcelorMittal Kryvyi Rih

The total investments of ArcelorMittal during 18 years of work in Ukraine amounted to $10.7 billion, the company has a long-term strategy for the development of the Ukrainian division

This year marks the 90th anniversary of ArcelorMittal Kryvyi Rih (formerly Kryvorizhstal). It is one of ArcelorMittal’s oldest enterprises and the largest in Ukraine with a full steel cycle, including coke, mining and steel production. Its history dates back to August 4, 1934, when the first pig iron was produced in blast furnace No. 1.

Since then, the company has been phasing in the commissioning of industrial facilities and production capacities.

Leadership and sustainable development

In 2005, the Kryvorizhstal steel plant was privatized at an open auction at a price of $4.85 billion, which became the largest investment in Ukraine during the years of its independence. Then the plant became part of the Mittal Steel company, and since 2007 – part of the ArcelorMittal corporation under the name ArcelorMittal Kryvyi Rih.

Since its inception, ArcelorMittal strives to ensure that its activities at all enterprises meet four values: safety, sustainability, quality and leadership. The global steel producer has transferred its key social and corporate practices to the Ukrainian enterprise.

The goal of ArcelorMittal is «Steel with mind: for people and planet.» As part of the world’s leading steel and mining company, Kryvyi Rih enterprise performs its responsible role to the community of presence and the country as a whole.

For 18 years of work in Ukraine, the company has invested more than UAH 5 billion in social development and charity. The main areas of social initiatives are education, health, ecology and local community development.

With the beginning of a full-scale invasion of the Russian Federation, the main direction of social and charitable activities was to help victims of the war and support the defense forces of Kryvyi Rih. In 2022, ArcelorMittal sent more than 380 million UAH for these purposes.

During the year, in 2023, priorities shifted to urgent large-scale infrastructure projects for the city related to the elimination of the consequences of terrorist acts of the Russian aggressor (the expansion of the water intake channel of the Saksagan River, the construction from scratch of a water pipeline more than 4 km long from the Ingulets River to the Pivdenne reservoir using the enterprise’s network), as well as to help the defenders of Ukraine and communities. In general, the amount of assistance since the beginning of the war amounted to more than 680 million UAH.

Key investments

Over 18 years of work in Ukraine, ArcelorMittal’s total investments amounted to $10.7 billion (including $4.85 billion – the amount of acquisition of the enterprise during privatization).

The key investment projects of the company, since 2006, have been the following:

• Reconstruction of coke oven batteries No. 3 and No. 4 (project cost – $199 million);
• Overhaul of the I category of blast furnace No. 8 ($127 million);
• Reconstruction of oxygen unit No. 2 ($45 million);
• Construction of a continuous casting machine for blanks No. 1 and a ladle furnace ($112 million);
• Construction of a new line for packaging rolled products on a small-grade mill 250-2 ($16 million);
• Overhaul of the I category of blast furnace No. 6 ($117 million);
• Construction of a complex for the preparation and injection of pulverized coal fuel into blast furnace No. 9 ($60 million);
• Reconstruction of coke oven batteries No. 5 and No. 6 with the introduction of environmental measures and an automated environmental monitoring system ($157 million);
• Modernization of agglomeration workshop No. 2 ($170 million);
• Construction of two new out-of-furnace steel processing machines and two new continuous casting machines (over $160 million);
• Reconstruction of a small-grade camp 250-4 (more than $60 million);
• Construction of new gas treatment plants for converters No. 4, 5, 6 with
• CO afterburning and the introduction of an automated environmental monitoring system ($65 million).
• Construction of the «Map III» tailings dump (over $150 million).

Among the main projects related to steel production this year:

• complete replacement of DP No. 6 lining,
• building reconstruction program,
• decentralization of heating systems of mining and steel workshops,
• reconstruction of the rolling mill building MS-250- 5 (after rocket fire).

The main investment for 2024 is the Map III tailings dump, the facility should be launched in the summer. It is also planned to increase the Tsentralnoye tailing pond to 110 m.

The extended repair of the second category of blast furnace No. 6 was completed in April of this year, it lasted 296 days and took place under difficult military conditions. The launch of the unit in the second half of April allowed the company to increase the production of steel products.

With the beginning of a full-scale invasion, ArcelorMittal Kryvyi Rih was forced to suspend blast furnace No. 9. In the near future, the company does not plan to resume production at the jubilee unit (this year it will be 50 years since its launch), as well as at the blast furnace No. 5.

Modern challenges

ArcelorMittal Kryvyi Rih is a city-forming enterprise, the largest employer in Kryvyi Rih and one of the largest in Ukraine.

With the beginning of a full-scale invasion of the Russian Federation, the Kryvyi Rih steel plant supported its hometown and Ukraine. Despite the attacks of the aggressor country against the energy infrastructure, the undermining of the dam of the Kakhovka HPP and the resulting suspension in the production of steel, the incomplete loading of production capacities, the steel plant survived and saved a team of many thousands, was able to avoid cuts, regularly pays wages and taxes.

Last year, like the entire Ukrainian steel sector, ArcelorMittal Kryvyi Rih continued to stabilize its financial condition after unprecedented losses in 2022 caused by the war and the destruction of logistics as a result of the blockade of the Black Sea ports. Despite this, the company provided about a quarter of all tax revenues to the city budget.

Last year, ArcelorMittal Kryvyi Rih paid UAH 4.1 billion in taxes and fees to the budgets of all levels of Ukraine, UAH 243 million of which went to the state budget and UAH 2.2 billion to local budgets. In 2023, the largest was the amount of land tax paid (more than 1.4 billion UAH), which came at the disposal of the local community of Kryvyi Rih. In total, over 18 years of ArcelorMittal’s operation in Ukraine, the company paid 103.2 billion UAH of taxes and fees.

However, the past year was extremely difficult for ArcelorMittal Kryvyi Rih. During this period, the level of loading of steel capacities was only 25-30%, in the mining department – 40%. In addition, the steel plant worked under constant restrictions in the supply of electricity – for example, because of this, in January 2023, steel and rolled products were not produced at all. In the end, there were several such periods, last year the prices for resources also increased significantly. These factors did not allow the company to start all the planned units on time.

When the situation began to slowly improve, the enemy destroyed the Kakhovka dam, and the company was forced to again suspend the work of a number of production facilities. All this negatively affected the competitiveness of the products of the steel plant.

Now the goal is to maximize capacity utilization and production volumes, to break even, to make a significant contribution to the budgets of all levels. However, this will again have to be done under difficult conditions, in particular, energy shortages due to Russian attacks.

Keeping traditions

Today, the ArcelorMittal Kryvyi Rih team (together with subsidiaries) has more than 20 thousand employees, and among them there are many who continue labor dynasties.

In addition, throughout the years of history, the steel plant maintains the tradition of mentoring. Much attention is paid to working with young people – the company provides a chance to start a career at a large international enterprise, become a participant in various events, take an internship, take part in the paid internship program «GoPro – time to become a professional.»

The company annually accepts more than a thousand students from all over the country. However, since February 2022, its holding at workplaces has been suspended, offering an alternative.

In addition, in 2021, the company launched a unique dual education project «New Factory,» which involved 300 first-year students. In the new, military realities, the project was transformed, the learning process changed, but the quality of student training remained at a high level. Its first participants have already received diplomas, its second wave continues.

On the eve of the birthday of the enterprise, it has also become a tradition to gather annually with veterans – this anniversary year they are again preparing a creative event.

Meeting with history

ArcelorMittal Kryvyi Rih (formerly Krivorozhstal) has its own museum of history, which began work in 1984. Its area is 770 square meters, three halls store about 5 thousand exhibits.

Here you can learn about the history of the enterprise and the achievements of our time. In particular, there is a stand dedicated to the polar explorer Nikolai Makoviy, who was previously an employee of the enterprise and personally transferred his things to the exposition. In the so-called production hall there is a working old switchboard, a model of a rolling roll, as well as a model of “Krivorozhstal,” which clearly demonstrates how large the steel plant is.

In 2022-2023, «fragments of war» – the remains of Russian weapons – are added to the museum exhibits. They are brought to the museum by employees of the enterprise who defended the country in the ranks of the Armed Forces of Ukraine.

Since July 2018, ArcelorMittal Kryvyi Rih PJSC has been taking on excursions around the enterprise not only children whose parents work at the enterprise, but also schoolchildren, students, residents and guests of the city. In 2021, more than 2.5 thousand people visited them.

Despite the war, ArcelorMittal Kryvyi Rih has a long-term development strategy in Ukraine, the company is ready for the challenges of time and difficult working conditions. The company will continue to pay taxes and invest in the region of presence. Thanks to these investments, both the steel plant and Kryvyi Rih, which are closely connected, have a future. In addition, the company plans to take a full part in the post-war reconstruction of the country.