ArcelorMittal Kryvyi Rih cuts steel production by 18.5% to 1 million tons in 2023

In 2023, compared to 2022, the ArcelorMittal Kryvyi Rih Mining and Metallurgical Plant (Dnipropetrovsk Region) reduced steel production by 18.5% to 1 million tons.

This is stated in the message of the enterprise, Ukrainian News Agency reports.

In 2023, iron production decreased by 7.2% to 1.6 million tons, rolled products - by 19.2% to 0.9 million tons, coke - by 20.3% to 0.9 million tons, ore production - by 2.1% to 11.4 million tons.

At the same time, concentrate production increased by 0.4% to 4.6 million tons.

According to the report, due to constant enemy attacks and related problems, ArcelorMittal Kryvyi Rih was able to use metallurgical production facilities by 25-30% in 2023, in the mining department this figure is 40%.

"In 2023, prices for electricity, transportation, coal and other components increased dramatically and stabilized, depending on the position, from 2 to 5 times compared to pre-war levels. These conditions have had a very negative impact on our financial results as they have a direct negative impact on the competitiveness of such commodity products that we produce. In addition to the consequences in these markets, in the 1st and 2nd quarters of 2023, we were also affected by serious disruptions in the supply of resources. So, in the 1st quarter there was a limitation in the supply of electricity, and this did not allow our company to launch all planned units. And suddenly, after solving our problems with electricity, the Kakhovska Dam was destroyed, which no one expected or predicted. This event once again showed the cruelty and insidiousness of the enemy and caused an environmental and humanitarian catastrophe in several regions of Ukraine, and also led to the cessation of steel production at our plant for several months," said Mauro Longobardo, Chief Executive Officer of ArcelorMittal Kryvyi Rih.

According to him, in 2024 the plant plans to increase the output of products.

“Our capital expenditure is also aimed at wartime survival. For obvious reasons, we stopped large-scale investment projects, such as the pelletizing factory, until the military situation becomes more predictable. This should help the plant through difficult times. Currently, the main emphasis of our strategic capital investment plan falls on a key project that is necessary for the operation of production - the construction of a new tailings storage facility - Third Card. But we continue to pay taxes, pay the salaries of our employees, fulfill environmental obligations - in 2023 we closed the oldest agglomeration factory of metal production. Together with the closure of two coke batteries No. 1 and 2 in 2022, this will significantly reduce industrial load in the region even in wartime," Longobardo said.

As Ukrainian News Agency earlier reported, in 2022, compared to 2021, ArcelorMittal Kryvyi Rih reduced steel production by 4.1 times to 1.2 million tons.

The capacity of the enterprise is designed for annual production of more than 6 million tons of steel, more than 5 million tons of rolled products and more than 5.5 million tons of cast iron.

Mittal Steel Germany GmbH, which is part of the ArcelorMittal international holding, owns 95.1283% of the company.

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