ArcelorMittal, the biggest foreign investor in Ukraine, is concerned about possible negative consequences of railway connection blockade in the east of the country. The blockade of coal supplies from uncontrolled territories of Donbass threatens energy stability of the plant and supply of raw materials needed for production activities. Eastern region, as the source of supply of raw materials, was lost for PJSC ArcelorMittal Kriviy Rih in 2014, and the plant had to shift to imported raw materials, but nowadays the risk of failure of imported railway supplies is higher.
At present the energy system of Ukraine is in challenging situation, the recommendations to decrease energy consumption have already been received. ArcelorMittal Kriviy Rih has developed the crisis plan of operation under conditions of emergency state in energy sector. Technological services of the shops are in full readiness in terms of possible electricity blackouts in Dnipropetrovsk region. ArcelorMittal Kriviy Rih notes that such measures affect the work of production units and stability of the plant’s operation as a whole.
At the moment, all production areas and structural subdivisions of ArcelorMittal Kriviy Rih work in normal mode. However, possible consequence of blockade can result in decrease of production since even now the company experiences the lack of coal grades ASh and AS, which are the crucial raw materials for sintering and steelmaking. Stock of these raw materials is exhausted, and the company is concerned about the possible risks regarding future supplies.
ArcelorMittal Kriviy Rih, as the biggest exporter in Ukraine, will undertake all possible measures in order to prevent production activity malfunction and failure to perform contractual obligations on export of its products. (AMKR/Ukrainian metal)