ArcelorMittal Kryvyi Rih Reducing Salaries And Production Due To Railway Freight Transportation Tariffs Rise

ArcelorMittal Kryvyi Rih mining and metallurgical combine (Dnipropetrovsk region) against the background of an increase in tariffs for railway cargo transportation by 70% reduces salaries and production.

Mauro Longobardo, the director general of the plant, stated this in his appeal, Ukrainian News Agency reports.

"Due to the blocking of the Black Sea ports by the aggressor, we had huge difficulties with the export of our products. We have completely rebuilt our logistics, are now cooperating with Ukrzaliznytsia and are trying to export both iron ore concentrate and cast iron in order to provide our plant with income, and the state budget with taxes. The cost of delivering raw materials to our company, and products to customers, increased 5 times. Recently, Ukrzaliznytsia and railway companies in Europe have not coped with the huge volume of railway cargo transportation from Ukraine: there is not enough capacity," the appeal says.

At the same time, the volume of exports of the plant is forced to decrease, the products remain in warehouses in Ukraine.

In addition, according to Longobardo, it was decided to increase Ukrzaliznytsia tariffs for cargo transportation by 70%, which makes the already high transportation costs unsustainable for the plant.

"The question of the survival of our enterprise has never been more acute. We are forced to radically cut our spending in all directions. For the management of the company, the priority number 1 remains the preservation of the team. As long as this is possible, we will fight for every workplace. Therefore, now that we no longer have the opportunity to pay salaries in full, we are forced to look at the work schedule for workers - both production and administrative personnel. Since July, the overwhelming majority of the team, including top management and foreign workers, will work at 2/3 of the load," the appeal says.

As Ukrainian News Agency earlier reported, the European Business Association calls on the authorities to cancel the increase in tariffs for rail freight transportation by 70% and introduce a moratorium on raising tariffs during martial law and within 12 months after its end.

Since June 29, the Ministry of Infrastructure has increased tariffs for the transportation of goods by rail by 70%.

ArcelorMittal Kryvyi Rih optimizes its management structure in wartime conditions.

Earlier, ArcelorMittal Kryvyi Rih temporarily suspended part of its investment programs.

Mittal Steel Germany GmbH, which is part of the ArcelorMittal international holding, owns 95.1283% of the plant's shares.

ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine, specializing in the production of long products, in particular rebar and wire rod.