Because of the problems with shipping of its products and the delivery of raw materials, as well as increased logistics expenses ArcelorMittal Kriviy Rih is forced to reduce wages by a third and output volume.
“The war months have become a true challenge for all of us. 1990 of our colleagues are fighting in the Armed Forces. The air sirens force us to the shelters. There is fighting some 70 km from us. Yet all the departments are operating and saving the enterprise. Still, it is not possible to cope with everything at once,” the company CEO Mauro Longobardo has said.
Due to the blockade of Black Sea ports AMKR has considerable difficulties with exports.
“We have completely reworked our logistics. We are now cooperating with Ukrzaliznytsia and trying to export both iron ore concentrate and pig iron to provide our company with income and the state budget with taxes,” he added.
The company expenses on delivery of raw materials and products to customers have increased 5-fold.
AMKR is unable to pay salary in full, so it has been forced to review working hours. Since the start of July, most of the employees have been working with 2/3 of loading. (Ukrainian metal)