ArcelorMittal could boost Ukraine steel output if situation stabilises

ArcelorMittal SA

07/11/2024 18:21

By Anna Peverieri
       Nov 7 (Reuters) - ArcelorMittal  MT.AS , the world's
second-largest steelmaker, could more than double annual
production by at least 3 million metric tons in war-torn Ukraine
if the situation stabilises there, the steelmaker's Chief
Financial Officer Genuino Christino told investors during a
quarterly conference call on Thursday.
    Christino did not elaborate on what conditions the company
would need to boost production. 
   The Luxembourg-based company operates a steel plant in the
city of Kryvyi Rih that is operating at 40% of capacity. The
plant currently produces 500,000 tons of steel on a quarterly
basis.
    Since Russia's full-scale invasion of Ukraine in 2022, the
plant had been running only one of three blast furnaces. In
April, the company restarted a second furnace, but will soon
revert to running just one with energy in short supply and
costly.
    "The price of energy has been very high and therefore we are
just optimising the flows of the production to save on energy
costs", Christino said.
    The plant sources some of its coal from a mine in the
eastern-Ukrainian town of Pokrovsk, which is at risk of being
seized by Russian soldiers. 
    ArcelorMittal reported third-quarter core profit that was 6%
above market expectations.

 (Reporting by Anna Peverieri; Editing by Rod Nickel)
 ((Anna.Peverieri@thomsonreuters.com;))