The ArcelorMittal Kryvyi Rih mining and metallurgical plant (Dnipropetrovsk region) from August suspends the work of the mining and processing plant for three months.
This is stated in the message of the plant, Ukrainian News Agency reports.
"In order to save all jobs, in August, the company leaves in force a special work schedule: most of the staff, including management and foreign employees, will work at 2/3 of the load. 2/3 of the salaries will be received by employees of the mining department, despite the fact that since August the company suspends the work of the mining and processing plant for the next three months. The temporary shutdown of the mining and processing plant is caused by serious economic factors. This is a decrease in economic activity in Europe amid the risk of recession and a significant increase in the costs of transporting iron ore raw materials," the report said.
It is noted that after the Russian invasion, ore production did not stop for a day.
"Timely reorientation of the enterprise to export iron ore concentrate helped keep the entire plant afloat. However, now in European markets, the demand for concentrate and metal products has sharply decreased, while traditional markets are still unattainable for ArcelorMittal Kryvyi Rih. Logistics costs for the company increased by 5 times. These circumstances do not leave the enterprise a chance to survive without significant cost reduction," the report says.
As Ukrainian News Agency earlier reported, ArcelorMittal Kryvyi Rih optimizes the management structure in wartime conditions.
Earlier, ArcelorMittal Kryvyi Rih temporarily suspended part of its investment programs.
On April 12, ArcelorMittal Kryvyi Rih partially resumed production.
On March 3, the ArcelorMittal international holding decided to suspend steel production at ArcelorMittal Kryvyi Rih to ensure the safety of employees and assets.
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.
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