Ukraine's largest steel company cuts output by five times, but is still working

20 January, 01:02 PM
Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih (Photo:АрселорМіттал Кривий Ріг)

Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih (Photo:АрселорМіттал Кривий Ріг)

Metal production levels at the ArcelorMittal Kryvyi Rih steel mill fell fivefold in 2022, the company’s Chief Executive Officer Mauro Longobardo has said, reporting last year's results.

"Because of full-scale war in Ukraine, decrease in export opportunities and limitations of power supply, production capacities of ArcelorMittal KryvyiRih (AMKR) were loaded by not more than 20-25% during 2022," an official message from the company reads.

The company's report stressed that the full-scale Russian invasion of Ukraine — the toughest challenge that independent Ukraine has ever faced — was the cause of the nationwide decrease in steel output by 70%.

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Production falls at ArcelorMittal Kryvyi Rih compared to the previous year were as follows:

·         Rolled products decreased by 77% to 1.1 million tons;

·         Steel output decreased by 77% to 1.2 million tons;

·         Hot steel was down by 71% to 1.6 million tons;

·         Coke fell by 63% to 1 million tons;

·         Concentrate dropped by 57% to 4.5 million tons;

·         Ore mining was down by 56% to 11.6 million tons;

"In 2022 we succeeded in preserving the most important thing — our team of 26,000 employees and our plant as a whole,” Longobardo wrote.

“At the cost of a lot of effort, we prevented damage to equipment due to unexpected enemy attacks and significant limitation on power supplies.”

He added that despite all of the challenges, the company continued to pay taxes and salaries, and continued regular shipments of its products via new logistic routes created from scratch.

"Neither did we ignore our environmental commitments — last year we started decommissioning of our two oldest coke oven batteries No. 1, No. 2,” the message reads.

“The batteries’ shutdown will result in a 37% decrease of emissions from the Coke Plant. We continue investments in the key project for production that is the construction of the new ‘Karta III’ tailing storage facility.”

In 2023, power supplies will be key to stabilising and gradually restoring production, Longobardo wrote.

The company still plans to retain its share of the domestic market, as well as to increase shipments of finished products to the European Union, he said.

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