ArcelorMittal, the world’s second-largest steel producer, could potentially more than double its annual production in Ukraine, increasing output by at least 3 million metric tons if stability returns to the conflict-impacted region.
Chief Financial Officer Genuino Christino shared this outlook during a quarterly investor call on Thursday. However, he did not specify the exact conditions necessary for the company to expand its operations.
The Luxembourg-headquartered company currently runs a steel plant in Kryvyi Rih, which is operating at 40% capacity and producing 500,000 tons of steel each quarter.
Christino’s comments indicate a significant production increase could be achievable under improved circumstances, signaling a substantial potential boost for Ukraine’s steel sector.
The plant had been running only one of three blast furnaces since the Ukraine invasion, in 2022. 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 is sourcing rae materials from a mine in the eastern-Ukrainian town of Pokrovsk, which is at risk of being seized by Russian soldiers, according to reports by Reuters.