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ArcelorMittal's Ukrainian division suffered 'significant' losses in 2022


In 2022, ArcelorMittal Kryvyi Rih, the largest metallurgical enterprise in Ukraine, received a significant net loss, while the parent company from Luxembourg had to provide assistance to the Ukrainian "daughter" for more than 600 million dollars.

ArcelorMittal's Ukrainian division suffered 'significant' losses in 2022

Kryvyi Rih Mining and Metallurgical Plant of PJSC ArcelorMittal Kryvyi Rih ended 2022 with a significant net loss due to the war and the operation of the enterprise at 25% of its capacity, however, it received financial assistance from ArcelorMittal Corporation in the amount of $600 million.

According to the general director of the enterprise, Mauro Longobardo, during a conversation with the workforce and heads of departments, the presentation of which was published by the corporate newspaper Metallurg, last year was difficult for the enterprise in all respects.

“Financial situation was very difficult, we have a significant net loss, but we received significant financial assistance from ArcelorMittal Corporation. It amounted to more than 600 million dollars. These funds were necessary in order to continue paying wages to employees and continue working, despite the difficulties with the purchase of raw materials, its high cost and other problems,” the top manager explained.

According to him, additional losses the company also suffered in terms of logistics.

“In this matter, we need to be as flexible as possible even now. We decide weekly which type of product we should sell in order to minimize costs. We hope that this year the situation will improve,” said the head of the steel plant, expressing hope that losses will be reduced to zero.

Longobardo also said that now the company plans to increase production in order to eventually reach at least the pre-war level . Touching upon the topic of environmental protection, the CEO emphasized that the enterprise faces the task of further reducing obsolete assets by the end of 2023.

“Ukraine is working to meet EU conditions on many issues. And it is already clear that it will go through this path much faster than expected. Our enterprise is also accelerating in many directions. After the war and the output of production at pre-war capacities, the company plans to invest in the modernization of the enterprise, to implement and introduce the latest production technologies,” Longobardo said.

According to him, in 2023 the company planned to allocate $ 130 million for capital investments . The main renovation project will be the construction of the Tretiya Karta tailing dump. Work will continue on other equally important projects: the completion of the construction of the tailings "Fourth Map" and "Mirolyubovskoye".

Special attention will be paid to the construction project of a pelletizing plant, work on which was suspended due to the war. In the metallurgical production, relining of blast furnace No. 9 is planned, and work will also continue on its modernization - in fact, this will be the construction of a new tenth blast furnace. It is also planned to increase production in the converter shop, improve the work of the MBLZ, at the coke production, in the sinter shop No. 2, etc.

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