ArcelorMittal Krivoy Rog intends to increase investments 20% in 2024

MOSCOW. Dec 27 (Interfax) - Ukrainian PJSC ArcelorMittal Krivoy Rog (AMKR) plans to increase investments in 2024 by 20% compared to this year to $155 million, Ukrainian media reported, citing the Metallurg corporate publication with reference to AMKR acting General Director Elena Bizayeva.

"ArcelorMittal Krivoy Rog continues to invest in production and development. Therefore, the capital investment budget in 2023 totaled $130 million, and in 2024 it will increase to $155 million," Bizayeva said.

She said that, in 2023, AMKR intends to produce more than 1.4 million tonnes of cast iron, 1 million tonnes of steel and 0.8 million tonnes of rolled metal.

As reported, the company reduced rolled metal production 77% in 2022 compared to the previous year to 1.1 million tonnes, steel smelting was down 76.3% to 1.2 million tonnes, and cast iron dropped 71 % to 1.6 million tonnes.

The plant sees the possibility to increase sales in the domestic market if there are state orders, by reserving workers despite the shortage of personnel in the labor market, normalizing logistics routes, and increasing the export of metal by sea and insuring ships, the article says. These state support measures were discussed during a visit by First Deputy Prime Minister of Ukraine - Minister of Economics Yulia Sviridenko to the enterprise.

The first deputy prime minister visited the mining and metallurgical departments and discussed how to increase production with the management of the enterprise. Sviridenko said that metallurgy has always been a fundamental industry for the Ukrainian economy, and that mining and metallurgy was responsible for nearly 10% of the country's GDP and brought in about a third of the revenue from all commodity exports. This industry has always been, and remains, export-oriented.

"The most important thing for Ukrainian metallurgy is that the government can now ensure unhindered export by sea [...]. We are now working on completely unblocking marine logistics and launching a vessel insurance mechanism," the first deputy prime minister said.

ArcelorMittal Krivoy Rog is the largest manufacturer of rolled metal in Ukraine, and specializes in the production of long rolled metal, specifically rebar and wire rod.