The Krivoy Rog mining and metallurgical plant "ArcelorMittal Krivoy Rog" (AMKR, Dnepropetrovsk region, Ukraine) in 2022 and 2023 received significant assistance from the parent company - ArcelorMittal - and intends to achieve break-even operation in 2024 without its financial assistance.
“We are gradually recovering from a very difficult 2022, when there was a significant loss of $1.3 billion, and we survived, in particular, thanks to the support of the parent company. In 2023, we managed to reduce this figure to $320 million (according to the forecast at the end of the year), but in 2024 it is urgent to reach zero. According to our business plan for the next year, we expect to see an improvement in results already in the second quarter,” said AMKR General Director Mauro Longobardo, answering questions from employees at a meeting with representatives of the enterprise’s workforce, held on November 21, the summary of which is published by the corporate publication “ Metallurg.”
According to him, if there is a significant improvement in the financial results of AMKR, if there are more clients, if it is possible to supply products to clients across the Black Sea, and if the financial results allow, the company will return to revising salaries upward.
“Higher salaries are directly related to the profitability of the enterprise, which is not the case now. Now the main task is to preserve the team and avoid staff reductions,” Logobardo emphasized.
As reported, the European Bank for Reconstruction and Development (EBRD) has provided AMKR with another loan in the amount of $150 million to replenish working capital for the operation . The bank approved the project on November 15, 2023, and funds are now being allocated.
On December 14, 2022, the EBRD already provided AMKR with a loan of $100 million to replenish working capital.
ArcelorMittal Krivoy Rog is the largest manufacturer of rolled steel in Ukraine. It specializes in the production of long products, including rebar and wire rod.
The international conglomerate ArcelorMittal, owned by the family of Indian-British businessman Lakshmi Mittal, owns the largest mining and metallurgical plant ArcelorMittal Krivoy Rog in Ukraine and a number of small companies.
