27 Dec 2023 14:18

ArcelorMittal Krivoy Rog replaces Finance Director

MOSCOW. Dec 27 (Interfax) - Ukraine's ArcelorMittal Krivoy Rog (AMKR) has replaced its Finance Director-Chief Accountant Sergei Plichko, who was terminated by an order from the general director dated December 25, 2023.

Ukrainian media reported that the company's information in the National Securities and Stock Market Commission system shows that Pavel Zadorozhny was appointed acting financial director - chief accountant as of December 25, 2023.

The order for his appointment was issued by the company's acting HR Director. The appointment period is through January 5, 2024. Prior to this, Zadorozhny worked as Deputy Finance Director of Accounting and Financial Reporting in the company's Finance Administration.

Plichko held the position of finance director at the plant for seven years.

As reported, ArcelorMittal Krivoy Rog intends to achieve break-even in 2024. "We are gradually recovering after a very difficult 2022, when there was a significant loss of $1.3 billion, and we survived, in particular, thanks to the support of the parent company. In 2023, we managed to reduce this figure to $320 million (based on the year-end forecast), but it is imperative we reach zero in 2024. According to our business plan for next year, we expect to see improved results by the second quarter," Mauro Longobardo, CEO of the mining and metallurgical plant, said in November.

It was also reported that ArcelorMittal Krivoy Rog shareholders will discuss financial and production activities for 2021-2022 at a meeting on December 28. (The outstanding loss at the end of last year reached UAH 3.3 billion). The draft resolution proposes paying off losses using retained earnings from previous years. The agenda includes "a report from the General Director on the results of reducing the equity capital of the PJSC" and the "measures that should be taken to improve the financial condition of the PJSC."

ArcelorMittal Corporation provided its business in Krivoy Rog with financial assistance at the beginning of the year of more than $600 million.

The EBRD loaned $100 million to the Krivoy Rog mining and metallurgical plant in December 2022 to replenish working capital, and loaned the company an additional $150 million in November 2023 for the same purposes.

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

The official exchange rate as of December 26 is 37.52 UAH/$1.