ArcelorMittal Kryviy Rih Released Overview of 2011
OREANDA-NEWS. August 7, 2012. PJSC “ArcelorMittal Kryviy Rih”, Ukraine’s largest steel plant, announced its 2011 annual results.
Key Highlights:
• Shipments: 4.9 million tons compared to 5.4 million tons in 2010.
• Steel production: 5 702 600 tons compared to 6 133 700 tons in 2010.
• Revenues reached 28.9 billion UAH, by 23% more than in 2010.
• Gross profit amounted to 6.4 billion UAH, by 43% more than in 2010.
• Net profit amounted to 2.1 billion UAH compared to 1.2 billion UAH of net profit in 2010.
• CAPEX increased to 2012.7 million UAH in 2011.
Production
Type of product |
2010 (mln tons) |
2011 (mln tons) |
2011 compared to 2010, % |
|
23,1 |
24,4 |
105,5 |
Coke (6% humidity) |
2,7 |
2,6 |
97,7 |
Concentrate |
8,9 |
9,6 |
107,7 |
Agglomerate |
9,5 |
9,0 |
94,7 |
Pig iron |
5,3 |
4,9 |
92,0 |
Steel |
6,1 |
5,7 |
93,0 |
Commercial rolled products |
5,4 |
4,9 |
91,3 |
In 2011 exports reached 83% of total sales (compared to 85% in 2010). In 2011 PJSC “ArcelorMittal Kryvyi Rih” supplied 59 countries worldwide (60 countries in 2010), with the main markets remaining Africa, the Middle East,
MODERNIZATION
In 2011 PJSC “ArcelorMittal Kryvyi Rih” has continued its modernization and transformation program to build the modern and dynamic enterprise. Major investment projects of the enterprise aimed at environmental protection activities and production development. In 2011 the amount of capital investments in implementation of the program for modernization of PJSC “ArcelorMittal Kryvyi Rih” amounted to USD 252 million compared with USD 219 million in 2010.
The most significant modernization projects are as followed: construction of CC-machine and ladle furnace that is one of the investment obligations of the plant in accordance with SPA. The cost of the project is over USD 100 million. This moment the object is driven up to the rated capacity.
In addition, the modernization program of 2011included:
• Reconstruction of tailings dam “Chetvertaya karta” to the mark of
• Reconstruction of tailing facilities and recycling water supply in an area of “Myrolyubivka” with increasing of flood-breaking dams to the mark of
• Gas cleaning of the converter shop;
• Installation of packaging line and shapes gagger at light-section mill 250-2;
• Capital repair of the 1st class of the blast-furnace No.6;
• Construction of new horizon –
• Construction of a transformer plant;
• Purchasing of four grinding mills for mining and beneficiation complexes, as well as a number of other projects.
In 2011 PJSC “ArcelorMittal Kryviy Rih” has increased payments to the budget and extra-budgetary funds by 1.5 times compared to
Payments of the enterprise to the budget and non-budgetary fund in 2010-2011 (UAH mln)
Payments |
2011 (mln UAH) |
2010(mln UAH) |
2011compared to 2010, % |
Total |
4 533 |
2 939 |
+54,4 |
Including: |
|
|
|
State budget |
1 927 |
502 |
+383,8 |
Local budgets |
502 |
447 |
+12,3 |
Payments to the budget during the import at customs |
1 297 |
1 164 |
+11,4 |
State trust funds |
807 |
826 |
-2,4 |
As of December 31, 2011 the total debt owed to the enterprise for VAT refund and for prepaid income tax amounted to UAH 4 228 million (by 21,5% more compared to December 31, 2010 when this sum amounted UAH 3 479 million).
Debt for VAT refund and prepaid income tax, UAH mln |
December 31, 2011 |
Receivables for VAT, total by balance: |
2 089 |
Prepaid income tax |
2 139 |
Total debt (VAT and income tax) |
4 228 |
Management of PJSC “ArcelorMittal Kryvyi Rih” continues the dialogue with the government of
HEALTH AND SAFETY
Health and Safety and creation of the self working conditions for the employees are the main priorities at PJSC “ArcelorMittal Kryvyi Rih” as well as at ArcelorMittal as a whole. In 2011 PJSC “ArcelorMittal Kryvyi Rih” spent over 187 mln UAH on activities for H&S. 36 accidents (compared to
Investments in Health&Safety 2010-2011
Period |
Plan, mln UAH |
Fact, mln UAH |
% from the sum of production sold in the previous year |
A sum per an employee in industrial area, thousand UAH |
2011 |
140,9 |
187,2 |
0,79 |
5 815 |
2010 |
86,4 |
120,3 |
0,84 |
3,412 |
In 2011 among H&S major projects of PJSC “ArcelorMittal Kryvyi Rih” aimed to improve the employees’ working conditions:
• Installation of the industrial air conditioners and warm-air heaters (1.8 million UAH) controlling the temperature at 90 workplaces at the subdivisions of the enterprise;
• Purchasing of a fixed control station of single blast in the open-mine pits of the mining department, providing more comfortable working conditions for personnel (866 thou UAH);
• Purchasing of multi-function hydraulic jack installation to create safe working conditions of employees of the railway plant No.4 upon the liquidation of the consequences of the rolling stock coming-off (934 thousand UAH);
• Construction completion of the first stage of the mechanized packing line of finished steel at the section rolling shop No.1 (66.7 mln UAH), the manual labor of employees will be eliminated while products packaging.
One more important trend of PJSC “ArcelorMittal Kryvyi Rih” H&S is cooperation with contractors aimed to prevent the occupational injuries among contractors. The enterprise implemented the procedure for assessing the compliance potential contractors with H&S norms, which determines the level of compliance with occupational safety in the organization at the stage of the tender. In 2011 PJSC “ArcelorMittal Kryvyi Rih” has reached a zero rate of fatalities with contractors.
INVESTMENTS IN CAPITAL RENEWALS AND REPAIRS
|
2010 (mln UAH) |
2011 (mln UAH) |
2011 compared to 2010, % |
Total |
3 304,2 |
3 865,6 |
+17,0 |
including |
|
|
|
Capital investments in creation and updating of fixed assets |
1 738,1 |
2 012,7 |
+15,8 |
Expenses for repairs and maintenance |
1 566,1 |
1 852,9 |
+18,3 |
ENVIRONMENT
In 2011 PJSC “ArcelorMittal Kryvyi Rih” investments in environmental protection activities amounted to 359.6 million UAH compared with 401.7 million UAH in 2010.
Figures of environmental protection of the company didn’t exceed the established standards for 2011 and compared with 2010:
• Emissions of air pollutants was reduced by 10.56%;
• The volume of wastewater was reduced by 27.4%;
• The volume of waste disposal in the environment was increased by 12.2%.
In
• Construction of gas treatment units at the converter shop. In 2011 the capital investments in this project amounted to 5.818 mln UAH. Due to the gas treatment units in the context of actual hours worked in 2011 the converter shop of PJSC “ArcelorMittal Kryvyi Rih” reduced dust emissions into the air by 24.245 t. Putting the new treatment technology into commission meets the modern requirements and provides the concentration of dust emissions by up to 20 mg/m3 in the state norm - 50 mg/m3.
• Integration into a single collector system of pipelines of air taps of tanks and vessels at the recovery plant. At the shop 11 sources of emissions of specific substances into the atmosphere had been eliminated because of this project, and emissions reduced by 1.97 t for actual work in 2011. Investments in this project amounted to 3.8 mln UAH in 2011.
• Reconstruction of tailing facilities and reverse water supply. In 2011 investments amounted to 108.2 mln UAH.
SOCIAL SPHERE
The main directions of development of PJSC “ArcelorMittal Kryvyi Rih” personnel are reflected in the Collective agreement and the program of activities on improvement of social and living conditions of employees. Financing is provided in accordance with the business plan of social expenditures and material benefits as well as according to the program of activities on improvement of social and living conditions of employees. In 2011 175 million UAH was spent on social expenditures and material benefits compared with 190 mln in 2010.
0.5 % of the funds from sold products for the previous year are allocated to implement the program of activities on improvement of social and living conditions of employees. It provides the projects in such directions as: capital and operating repairs, technical re-equipping facilities of social purpose, facilities of rest, treatment and health improvement of enterprise employees. In 2011 within the framework of these activities 118 mln UAH was spent compared to 99 mln UAH in 2010.
Staff
Actual numbers of staff amounted to 33 890 employees as of 1.01.2012. PJSC “ArcelorMittal Kryvyi Rih” is among the leaders in terms of average wages at the metallurgical plants of
Medical care
PJSC “ArcelorMittal Kryvyi Rih” spent over 97 mln UAH on rehabilitation and recreation of employees and their families in 2011. The company invested this amount in the development and maintenance of its social infrastructure – 3 children's health-improving camps, sanatorium “Dzherelo”, as well as for the purchase of health-treatment vouchers to sanatoriums of
More than 5 000 children of employees have improved their health at the children's summer camps, and 6 240 employees of PJSC “ArcelorMittal Kryvyi Rih” and their family members took the opportunity to have rest at health complexes in 2011
Housing construction
Construction of housing for employees is one of the main investment commitments in the social sphere, which PJSC “ArcelorMittal Kryvyi Rih” fulfilled in full in
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