Mr. Jean Jouet, CEO of ArcelorMittal Kriviy Rih, said that the company plans in 2010 to increase its steel product output by about 22.6% YoY to 5.5 million tons.According to the sale and purchase agreement signed with the State Property Fund of Ukraine in 2005, the company undertook to produce at least 6 million tons of steel products per year.
Mr. Jouet said “We complied with this requirement until 2007, but since the crisis began in 2008 we produced less than 6 million tons and in 2009 less than 5 million tons. In 2010 we hope that steel production and shipment amounts to more than 5.5 million tons. Thus, it will be more than in 2009, but still will not reach the pre-crisis levels.”
He said that in the medium and long term, steel consumption on the Ukrainian domestic steel market will develop. He added that “This is connected with construction. For us, this means large infrastructure projects, however until they start, we do not expect a serious increase in domestic shipments.”
Mr. Jouet noted that the Ukrainian domestic market will never be significant for the company. He said that “As always, we are focused on exports, the share of which amounts to 80% of total shipments. Of course, this market is important. Our main product is rebar. In better times Ukraine was purchasing 1 million tons of this product which is only 20% of our output. Therefore, for us and for other producers, it is important to remain competitive on foreign markets.” (SteelOrbis)