ArcelorMittal Kryvyi Rih Increases Production but Fails to Break Even in 2024
In 2024, PJSC ArcelorMittal Kryvyi Rih, Ukraine’s largest mining and metallurgical enterprise, achieved significant increases in production across all product categories compared to 2023. However, despite these gains, the company was unable to reach breakeven due to a combination of persistent challenges stemming from the ongoing conflict in the region and other operational hurdles.
The war continues to exert a profound impact on the company’s operations, affecting everything from production processes to logistics and market access. Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, explained that despite efforts to cut costs, optimise consumption, and manage production to mitigate losses, a number of external factors hindered the company’s ability to achieve financial equilibrium. Key issues included disruptions in the operations of blast furnaces, which were exacerbated by a fire in the coke oven battery due to a power cut during the summer. Additionally, the company faced expensive logistics, an unstable energy supply owing to constant attacks, shortages of personnel, and a challenging foreign market environment.
These combined factors significantly impacted the company’s competitiveness, further driving down its financial performance. Nevertheless, despite these ongoing challenges, ArcelorMittal Kryvyi Rih demonstrated resilience. The steelmaker temporarily reached 50% of its steel production capacity mid-year. The mining division operated at 70-75% of pre-war levels, leading to a notable increase in production. Pig iron production saw a 42.7% year-on-year growth, reaching 2.17 million tons, while steel production surged by 69.9% to 1.65 million tons. Rolled steel output also saw a rise of 72.1%, reaching 1.53 million tons. Additionally, coke production increased by 48.5%, and iron ore production jumped by 68.3% compared to 2023. Despite the operational and economic difficulties, ArcelorMittal Kryvyi Rih remains committed to its long-term objectives. The company is continuing to invest in vital infrastructure projects, including the construction of the Third Map tailings facility, with the first phase completed in 2024.
Looking ahead, Longobardo stressed that the company’s goal for 2025 is to achieve self-sufficiency without relying on financial support from its parent group, which has provided assistance during these challenging times. With optimism for Ukraine’s eventual recovery, ArcelorMittal Kryvyi Rih is dedicated to staying in the country and contributing to its reconstruction once the conflict ends. In 2023, the company had faced similar challenges, producing 1 million tons of steel, 1.5 million tons of pig iron, and 0.9 million tons of rolled products, while also paying over UAH 4 billion in taxes and fees to the Ukrainian government.
