ArcelorMittal Kryvyi Rih, a leading steelmaking enterprise in Ukraine, aims to ramp up its production capacity utilization to 50% in 2024 despite facing various challenges. Mauro Longobardo, the company’s CEO, revealed plans to boost production by leveraging improved maritime logistics, as stated in an interview with Delo.ua.
Longobardo highlighted the positive development of maritime logistics, particularly the accessibility of Black Sea ports for the company’s products, including iron ore concentrate, pig iron, and rolled metal. He emphasized the significance of this advancement in facilitating increased production levels.
The company intends to maximize the capacity of its mining division and initiate operations of two blast furnaces in April 2024, marking a significant milestone toward achieving 50% of its pre-war capacity. Longobardo explained the cautious approach in delaying the launch of the second blast furnace earlier due to the risk of attacks on energy infrastructure, a concern validated by recent incidents in the Kryvyi Rih district.
Currently operating at 25% of its full capacity, ArcelorMittal Kryvyi Rih faces challenges associated with the expensive sea route for its products. Longobardo revealed that freight rates have doubled, attributing the increase to risk premiums imposed by ship owners and crew members. Despite the high costs, the company remains hopeful for price reductions and increased traffic along the corridor.
In January 2024, the company witnessed notable growth in steel production, rolled steel, pig iron, iron ore concentrate, and coke, reflecting its resilience amid challenging circumstances. Despite the hurdles encountered in 2023, including the production of 1 million tons of steel, ArcelorMittal Kryvyi Rih remains committed to contributing to the Ukrainian economy and maintaining its production facilities to scale up production when conditions permit.
ArcelorMittal Kryvyi Rih serves as a vital player in Ukraine’s steel industry, with production facilities capable of producing over 6 million tons of steel, 5 million tons of rolled products, and 5.5 million tons of pig iron annually. With a workforce of over 20 thousand employees, the company continues its operations amidst adversity, striving for growth and stability.
LATEST NEWS
-
LEAG Plans Construction of Hydrogen-Ready Gas Power Plant in Eastern Germany
03/05/2024
-
Uzbekistan’s Ambitious Rare Earth Investment Plans
03/05/2024
-
Central Asia’s Green Energy Revolution: Unveiling Turkmenistan’s Potential
03/05/2024
-
Central Asia’s Geological Resources Poised for Global Impact
03/05/2024
MOST POPULAR
-
Ukrainian Steel Industry Faces Challenges Amidst Ongoing Conflict
-
Raiden Resources advances its exploration projects in Pilbara, Australia, and Bulgaria
-
Poland Emerges as Silver Giant: Implications and Challenges
-
EU Commission Approves €1.3 Billion State Aid for ArcelorMittal’s Green Steel Initiative