ArcelorMittal Kryvyi Rih

Coordinates: 47°52′26″N 33°23′50″E / 47.8739°N 33.3972°E / 47.8739; 33.3972
Source: Wikipedia, the free encyclopedia.
(Redirected from
Kryvorizhstal
)
ArcelorMittal Kryvyi Rih
ArcelorMittal
Websiteukraine.arcelormittal.com
Steel Production
Wire rod production at ArcelorMittal Kryvyi Rih, 2017

ArcelorMittal Kryvyi Rih (former Kryvorizhstal;

steel company, founded in 1934 and located in Kryvyi Rih, in central Ukraine
.

Bought in 2005 by

Mittal Steel, the steel plant is one of the most important Ukrainian companies and a globally important steel producer. In Ukraine it is the largest steel manufacturer of both rebar and wire rod. ArcelorMittal Kryviy Rih also specializes in the manufacture of sections, angles, strips and billets
.


Background

The presence of iron ore in the regions around

Kryvyi Rih Basin were producing over 1,000,000 tonnes of ore. Industrial expansion continued in the region up to 1917. Production dropped during the First World War.[1]

Foundation and growth in Soviet Union

Construction work on a new giant blast furnace iron-melting unit at Lenin Metallurgical Works (Soviet name) in Kryvyi Rih

After the formation of the Soviet Union and expulsion of Austro-Hungarian forces and then anti-communist forces occupying the region under Anton Denikin, relative normalcy resumed.[1] Planning of the plant began in 1929, with the intent to construct an integrated steel plant comprising iron ore and carbon mining to finished steel products.[3] In 1931, the chairman of the Supreme Economic Council of the USSR, Grigori (Sergo) Ordzhonikidze, signed a decree ordering the construction of the facility; that same year, the foundation stone of the metallurgical plant was laid. In August 1934, the first metal was produced at Kryvorizhstal, later known as 'Kryvyi Rih Metallurgical Plant'.[4]

Before the onset of the

blooming mill with a yearly capacity of 1.7 million tonnes, a fourth blast furnace and a third open hearth furnace came online, shortly before the Nazi occupation.[5] Before German troops arrived, equipment and employees were evacuated to Nizhny Tagil, east of the Ural Mountains.[5] During the German occupation from 14 August 1941 to 22 February 1944,[1] what remained of the plant was left in ruins.[6]

After recapturing of the area, the plant was rebuilt and continued its growth. Blast Furnace 7 was built in 1962, and Blast Furnace 8 was completed in 1970, making the plant the largest in Europe. In 1974, Blast Furnace 9 opened,[1] the biggest in the world with a volume of 5,000 m3.[7]

Ukrainian independence

In 1996, restructuring took place, combining the mining and ore concentrating unit Novokrivorozhsky HZK (Новокриворізький ГЗК (НК ГЗК)) (NK-HZK) with the Kryvyi Rih State Mining and Metallurgical Combine (Kryvorizhstal) (Криворізького державного гірничо-металургійного комбінату "Криворіжсталь"). Kryvyi Rih coking plant[8] (Криворізький коксохімічний завод (ККХЗ)) was included in the group in 1997,[7] forming "Novokrivorozhsky mining and processing combine and Kryvyi Rih coking plant" (Новокриворізький гірничо-збагачувальний комбінат і Криворізький коксохімічний завод «Криворіжсталь»), or Kryvoriszhstal. This was all on paper, given that the three units had been always been designed to work jointly, and that the facilities were on the same site.

First privatization, 2004

Kryvorizhstal became internationally known when it was

Viktor Pinchuk.[10] Higher offers from foreign investors, including a joint bid from Severstal/Arcelor, and a bid from Tata Steel, were rejected on bidding technicalities.[13] The deal was widely criticized by the opposition and from abroad as an example of corruption and state property mismanagement.[10]

On the initiative of newly elected President Viktor Yushchenko, the privatization deal was dismissed by a court in June 2005, and the company sold again in a fair auction.[10]

2005, Second privatisation and ArcelorMittal company

At the time of the second privatisation, the company had annual sales of $1897 million with a net profit of $378 million, and cash reserves of $413 million. The plant had a production capacity of ~10 million tonnes of raw steel, and a rolling capacity of under 7 million tonnes, and was able to source most of its requirements for iron ore and coke locally.

Mittal Steel was the highest bidder and acquired a 93.02 percent stake in Kryvorizhstal on 24 October 2005, for ₴ 24.2 billion, or US$4.81 billion.[10] Mittal Steel was expected to finance the acquisition from its own cash reserves and from a $3 billion loan arranged with UK based Citigroup. The price exceeded analyst predictions of $3 billion,[14] making it the largest privatization deal in the former Soviet Union.[citation needed
]

In 2006, the company was renamed Mittal Steel Kryvyi Rih[15] (Ukrainian : ВАТ «Міттал Стіл Кривий Ріг»), and later in 2007, after the takeover of Arcelor by Mittal steel to form ArcelorMittal, the company was renamed ArcelorMittal Kryvyi Rih.[16]

During the

late-2000s financial crisis, steel production dropped from 8.1 million tonnes in 2007[17] to 6.2 million in 2008[18] and 5 million in 2009,[19] with decreases in other production metrics and revenues, with the company registering a net loss of ₴120 million in 2009 (down from a profit of ₴4.7 billion the year before).[20] Production levels recovered to 2008 values in 2010.[21][22]

Investments 2006-2022

Between 2006 and 2022 in Ukraine, the company's total investments amounted to $10 billion (including $ 4.8 billion – take over amount during the privatization + $ 5.2 billion - investment in production development). Major investment projects from 2006 to 2022 included:


Mauro Longobardo was appointed Chief Executive Officer of ArcelorMittal Kryvyi Rih, effective 18 February 2020.[citation needed]

Production

In 2005, the plant produced over 6 MT of

crude steel, 5 MT of rolled products and 5.5 MT of hot metal.[23]

Located entirely in Kryvyi Rih, this steel company was built as an integrated mining and steel plant, comprising: an

blooming facilities) and three metal-rolling
workshops.

Production volumes in 2021 were as follows:

  • Ore mining: 24.5 million tons
  • Concentrate: 11 million tons
  • Hot metal: 5.3 million tons
  • Steel: 4.9 million tons
  • Rolled products: 4.6 million tons

See also

References

  1. ^ a b c d e f g "Historical chronicle of events (Kryvyi Rih City) 1734-1900", kryvyirih.dp.ua, archived from the original on 13 July 2007
  2. ^ "Власники та бенеціфіціари компанії ArcelorMittal Kryvyi Rih". opendatabot.ua (in Ukrainian). 2023-09-30. Retrieved 2022-12-17.
  3. ^ Парадоксальные воспоминания о будущем КРИВОРОЖСТАЛИ. Bittersweet memories of the future KRYVORIZHSTAL h.ua
  4. ^ "Історія створення "залізного серця" України - "Криворіжсталі" - kryvyi-rih.one". 25 June 2022.
  5. ^ a b N. A. Gurov (July 1979). "Phases of large growth — The 45th anniversary of the Krivorozhstal' plant". Metallurgist. 23 (7). Springer New York: 439–443.
    S2CID 137266340
    . Krivorozhstal' Plant. Translated from Metallurg, No. 7, pp. 6–8, July, 1979.
  6. ^ Кривой Рог - город шахтеров и металлургов Archived 2010-02-26 at the Wayback Machine Kryvyi Rih --city of miners and metallurgists www.krivbassham.org
  7. ^ a b c АрселорМиттал Кривой Рог (Криворожсталь) ArcelorMittal steel (Kryvorizhstal) file.liga.net
  8. ^ КРИВОРОЖСКИЙ КОКСОХИМИЧЕСКИЙ ЗАВОД Kryvyi Rih Coke plant chem2.expoweb.ru
  9. ^ a b c d e f John Marone (19 March 2010), "Monopolies thrive as toothless state bows to moguls", www.kyivpost.com, Kyiv Post
  10. ^ a b Чистая прибыль "Криворожстали" составила 2012,610 млн. гривен, ukrrudprom.com (in Russian), 15 June 2005
  11. ^ Alex Nicholson (14 May 2004), "Severstal Warns Kiev Over Major Sell-Off", www.themoscowtimes.com, The Moscow Times, Ukraine has set a minimum bid of $714 million for 93.1 percent of Kryvorizhstal, one of Ukraine's few profitable metals companies. It reported pre-tax profits of $302 million last year and has a capacity of 6 million tons of rolled steel, 7 million tons of steel and 7.8 million tons of pig iron
  12. ^ Как закалялась "Криворожсталь"!, rosinvest.com (in Russian), 16 August 2005
  13. ^ a b "Mittal buys Ukraine's Kryvorizhstal for 4.81 bln usd - UPDATE", www.forbes.com, AFX News Limited via Forbes, 24 October 2005[dead link]
  14. ^ Krivorozhstal renamed as Mittal Steel Kryvyi Rih Archived 2011-07-16 at the Wayback Machine 14 January 2006, via steelguru.com
  15. ^ "Mittal Steel Kryvyi Rih" renamed for "ArcelorMittal Kryvyi Rih" 22.06.2007 www.kmu.gov.ua
  16. ^ "ArcelorMittal Fact Book 2007" (PDF), www.arcelormittal.com, ArcelorMittal, p. 129, June 2007[permanent dead link]
  17. ^ "ArcelorMittal Fact Book 2008" (PDF), www.arcelormittal.com, ArcelorMittal, p. 97, June 2008[permanent dead link]
  18. ^ "ArcelorMittal Fact Book 2009" (PDF), www.arcelormittal.com, ArcelorMittal, p. 97, June 2009[permanent dead link]
  19. ^ "ArcelorMittal Kryviy Rih: overview of 2009", www.arcelormittal.com, ArcelorMittal, 16 March 2009
  20. ^ "ArcelorMittal Fact Book 2010" (PDF), www.arcelormittal.com, ArcelorMittal, p. 30,77, July 2011[permanent dead link]
  21. ^ "OJSC "ArcelorMittal Kryviy Rih" announces its November production results", www.arcelormittal.com, ArcelorMittal, 17 December 2010
  22. ^ "Mittal Steel Company Acquires a 93% Stake in Kryvorizhstal in Ukraine", www.prnewswire.com, Mittal Steel Company NV, 24 Oct 2005

Sources

  1. Dan Stern (2011-04-06), "Testing the mettle of Ukraine's steel city", news.bbc.co.uk,
    BBC World News
  2. Reuters - Major Ukraine steel plant ramps back up - but Russian troops are close Archived 18 May 2022 at the Wayback Machine.] (April 27, 2022);
  3. The CEO of ArcelorMittal Kryvyi Rih spoke about the Company's operation under quarantine Archived 23 January 2022 at the Wayback Machine.] (31 March 2020);
  4. WPROST - Gigantyczna fabryka wznowi produkcję w mieście Zełenskiego. „To jest symbol. Ukraina żyje” Archived April 27, 2022, at the Wayback Machine.] (02.04.2022);
  5. Il Sole24 Ore - Chi è l’italiano che sta dietro all’acciaio ucraino (May 31, 2022);
  6. Financial Times - Ukraine: the $10bn steel plant at the heart of Russia's economic warfare
  7. The Wall Street Journal - Ukraine's Economy Stabilizes, a Boost Alongside Rapid Military Gains Archived September 26, 2022, at the Wayback Machine.] (September 13, 2022);

External links

47°52′26″N 33°23′50″E / 47.8739°N 33.3972°E / 47.8739; 33.3972