Mauro Longobardi: “Using pellets will increase our productivity and make us more efficient”

ArcelorMittal Kryvyi Rih, in parallel with the reconstruction of existing facilities, which is currently ongoing, is planning a number of large investment projects aimed at increasing productivity and reducing environmental impact. Mauro Longobardi, General Director of ArcelorMittal Kryvyi Rih, spoke about three key ones to Metal-Kur Premier magazine and noted that the amount of capital investments in the next three years will amount to more than $ 600 million, and the implementation of these projects will allow thinking about further investments in increasing the productivity of steel and section rolling capacities, as well as in the development of new products with higher added value. – Mr. Longobardi, ArcelorMittal has approved a large investment package for the Ukrainian steel mill. What projects will be key? – The capital investment program includes a number of projects, of which three are the most significant and have an environmental focus, which is especially important for us today. The first of the projects is the construction of a pelletizing plant for the production of pellets, with the implementation of which we will introduce modern technologies and increase the productivity of the plant. The second major project is the reconstruction of our blast furnace No. 9, one of the largest in the world. the last time the repair of the first category of the unit was carried out in 2003. Now is the time to extend its life for the next 20 years. The third project is the reconstruction of the waste gas cleaning system in the converter shop. And, in fact, this is the most important project from the point of view of ecology. The amount of capital investments in these three projects will exceed $ 600 million. The term for the development of investments and completion of projects, according to the program, is determined by the end of 2023. After that, we will begin to close the old units of ArcelorMittal Kryvyi Rih – sinter shop No. 1 and metal production, coke oven batteries No. 1, 2. And after completing the reconstruction of blast furnace No. 9, we will shut down blast furnace No. 7, and from 2024 we will operate with three furnaces instead of four, which we have now. Of course, our capex program also includes investments in the company’s commercial development, for example, in the production of products with high added value. However, I would like to focus on the three main projects of the first turnaround, as they should take ArcelorMittal Kryvyi Rih to a whole new level in terms of emissions and environmental impact. In addition, their implementation will allow thinking about further investments “related to increasing the productivity of steel and section rolling capacities, as well as the development of new products. – What environmental effect do you expect from the implementation of the investment program?” And ArcelorMittal Kryvyi Rih plans to stick to ArcelorMittal’s strategy for carbon neutrality in Europe? – After the completion of the projects, we expect to reduce emissions by 46% and reach the level already required by strict European laws. We need about 5 years for this. Our global goal is to fully comply with the long-term ArcelorMittal’s environmental strategy, which envisages that the company’s metallurgical facilities will become completely carbon-neutral by 2050. Investments in modernization of production are already being mastered at the Group’s European assets, but in Ukraine we will have to catch up a bit. at ArcelorMittal Kryvyi Rih for several years we have determined We have taken from this technological approaches to fully comply with the strategy of ArcelorMittal. We are now determined to move forward despite all the circumstances created by the COVID-19 pandemic. Moreover, the ArcelorMittal company in May last year – exactly at the height of the pandemic – confirmed all investments in ArcelorMittal Kryvyi Rih. This means that we now have very clear commitments “Commitments, and we are focused on finding an appropriate agreement with the government for the transition period. – ArcelorMittal Kryvyi Rih has already worked out a long-term program of modernization of capacities for the implementation of technologies with hydrogen in line with ArcelorMittal’s strategic plans and goals? – We now have a key goal of achieving zero emissions in line with the European deadlines, but planning significant investments in the implementation of hydrogen technology at ArcelorMittal Kryvyi Rih “It is still difficult, because even for Europe this is a new technology. Perhaps in Europe ArcelorMittal will start using hydrogen technologies in iron smelting in about two years. And we can use their experience to optimize and tune the best solutions at the facilities of ArcelorMittal Kryvyi Rih.” currently there are actual investment projects on which our pr the enterprise plans to focus on the first. And, possibly, blast furnace No. 9, the modernization of which is now planned, will be closed by 2050 as a result of the emergence of modern technologies. – Most environmental investments in Europe are co-financed by a fund

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