During the European Economical Congress in Katowice, Marta Jamo, the director of the Ministry of Industry’s analytics department, highlighted the critical state of Poland’s mining sector. Despite turning a profit last year, the industry struggles to convert it into tangible assets, she stated. Jamo pointed out the persistent issue of high coal piles, stemming from past practices of unregulated imports and a lack of understanding of market and energy industry demands. Emphasizing the urgency, she stressed the need to address the social contract.
Tag: challenges
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ArcelorMittal Kryvyi Rih Plans to Increase Capacity Utilization to 50% Despite Challenges
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.