10:15 15.04.2021

Economy Ministry, ArcelorMittal Kryvyi Rih signs memorandum on $1 bln investment projects for ecological modernization

4 min read
Economy Ministry, ArcelorMittal Kryvyi Rih signs memorandum on $1 bln investment projects for ecological modernization

The Ministry for Development of Economy, Trade and Agriculture of Ukraine and PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) signed a memorandum for the implementation of new investment projects: the company plans to invest about $1 billion in new projects for environmental modernization and production development.

According to a press release from the ministry, the memorandum was signed on Wednesday by Minister Ihor Petrashko and ArcelorMittal Kryvyi Rih CEO Mauro Longobardo.

The Steel Billion, a new investment program of ArcelorMittal Kryvyi Rih, will focus on environmental impact reduction, company sustainable development and introduction of circular economy principles: efficient use of resources, recycling and waste utilization.

"ArcelorMittal is a large investor, exporter and employer. Today we agreed that the company would significantly increase investments in Ukraine, and introduce advanced, environmentally friendly technologies in steel making, which is one of our strategic economy sectors. We expect that investment activity in our country will recover gradually after the crisis of 2020, and cooperation with the global largest steel producer will become an incentive for investors to contribute to Ukraine," Petrashko said

Longobardo said that during 15 years of operation in Ukraine, the company has invested over $5 billion in production development, and now offers the new program Steel Billion, according to which about $1 billion will be invested into environmental modernization.

"We continue to implement large investment projects and are gradually transforming ArcelorMittal Kryvyi Rih into a modern European production. Steel Billion is our new program for Ukraine. By this program, we will finance green steel-making technologies and de-carbonization projects. This fully complies with ArcelorMittal Group's strategy to become carbon-neutral. Actually, steel already has a lower carbon footprint compared to other materials: no other material has the same recovery and reuse capacities. The initiatives to be confirmed under the Memorandum today are a step forward in Ukraine’s industry. We count on cooperation and comprehensive support of the government on this way," Longobardo said.

On April 14, Prime Minister of Ukraine Denys Shmyhal met with ArcelorMittal Kryvyi Rih Board Chairman Lakshmi Mittal. The meeting was attended by Deputy Prime Minister of Ukraine, Minister for Strategic Industries of Ukraine Oleh Urusky, Petrashko and representatives of ministries.

The head of the Ukrainian government welcomed the signing of a memorandum between the Ministry of Economy and the enterprise to support investment projects for the period 2022-2032. Shmyhal said that the signing of the memorandum was made possible thanks to the law initiated by President of Ukraine Volodymyr Zelensky on state support for projects with significant investments.

"Together with the President and Parliament, we launched effective tools that enhance the investment attractiveness of Ukraine. Today's memorandum is one of the first successful examples when the large international company plans to use the appropriate tools and increase investments and the number of jobs in Ukraine," Shmyhal said.

The head of government added that according to the memorandum, a significant part of the investments will relate to projects that reduce the negative impact on the environment. At the same time, the Prime Minister thanked the company's management for socially important initiatives, the development of medicine and the support of the communities where the enterprise is located.

"The government calls on socially responsible business to join state initiatives in Ukraine, when investors become not only business partners of the state and communities, but also actively participate in the development of the region where they work. The government, for its part, is ready to comprehensively contribute to the further development of mutually beneficial relations and will continue work to improve the investment climate," the Prime Minister said.

The Memorandum provides for the following areas of development and investment: green metallurgy, which contributes to less pollution and reduced carbon footprint; sustainable development of iron ore mining – continuation of mining activities for 30 years; creation of new industries, in particular rolling and bar mills; modernization of existing facilities; circular economy and waste management (utilization of biomass, streamlining of CO2 emissions, processing of slags and sludge).

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