ArcelorMittal Kryvyi Rih

ArcelorMittal Kryvyi Rih is an integrated mining and steelmaking company based in Kryvyi Rih, central Ukraine. It is the successor to Kryvorizhstal, a large Soviet-era metallurgical combine established in the 1930s, and is one of Ukraine’s most important industrial enterprises. The site combines iron-ore extraction and beneficiation with coke production, sintering, blast-furnace ironmaking, steelmaking, casting and rolling. This vertical structure allows the company to convert locally mined ore into finished and semi-finished steel products within one industrial complex. The industrial history of the Kryvyi Rih region predates the plant. Iron ore deposits were identified and surveyed during the eighteenth and nineteenth centuries, while large-scale extraction began in the 1880s after railway connections improved access to the basin. Planning for a major integrated works began in 1929, and construction was formally ordered in 1931. The first metal was produced in August 1934. Before the Second World War, the works had several blast furnaces, open-hearth furnaces, a blooming mill and supporting power infrastructure. Much of the plant’s equipment and workforce were evacuated eastward in 1941, and the remaining facilities were heavily damaged during the German occupation. Reconstruction began after the region was recaptured in 1944. The Soviet plant expanded substantially after the war. Blast Furnace No. 7 entered service in 1962, No. 8 in 1970, and No. 9 in 1974. The ninth furnace was then the world’s largest by volume, helping make the complex one of Europe’s largest steel facilities. Following Ukrainian independence, organizational restructuring brought the metallurgical combine together with the Novokrivorozhsky mining and processing combine and the Kryvyi Rih coking plant. The resulting enterprise became widely known as Kryvorizhstal. Kryvorizhstal became a central issue in Ukraine’s privatization debates. A 2004 sale to an Investment-Metallurgical Union consortium associated with SCM and Interpipe was later annulled by a court after criticism that the process had excluded stronger foreign bids. In a televised re-auction in October 2005, Mittal Steel acquired a 93.02 percent stake for UAH 24.2 billion, or approximately US$4.81 billion at the time. The transaction was one of the largest privatizations in the former Soviet Union. The company was renamed Mittal Steel Kryvyi Rih in 2006 and adopted its current name after the 2007 combination of Mittal Steel and Arcelor. Under ArcelorMittal ownership, the company pursued extensive modernization across mining, coke, ironmaking, steelmaking, casting, rolling and environmental systems. Projects included coke-oven reconstruction, blast-furnace upgrades, pulverized-coal injection, continuous casting machines, rolling-mill modernization, new gas-cleaning facilities, ore-processing improvements and expanded tailings infrastructure. The business remains Ukraine’s leading producer of rebar and wire rod and also manufactures sections, angles, strips, billets and related long products. Its activities and investment plans have been repeatedly affected by global steel cycles, the COVID-19 period and Russia’s full-scale invasion of Ukraine in 2022. The invasion led the company to temporarily suspend or defer several major capital projects, including a pellet plant originally expected to open in 2023, while retaining spending considered essential to operational continuity and environmental safety. The Tretya Karta tailings facility was treated as a critical project because it would support continued mining and enable the retirement of older waste-storage sites. Despite wartime risks, workforce mobilization and weak European steel-market conditions, the company has continued operating. Mauro Longobardo became chief executive officer in February 2020.

The Kryvyi Rih iron-ore basin has been associated with mineral exploration since the late eighteenth century. During the nineteenth century, surveys identified substantial iron and manganese resources, and industrial ore extraction began in 1881. Railway construction helped transform the area into a major mining district; by the 1890s, numerous mines were producing more than one million tonnes of ore annually. Plans for an integrated mining and metallurgical complex were developed in 1929. In 1931, Soviet authorities ordered construction and laid the foundation stone for the future works. The first metal was produced in August 1934. The early complex included blast furnaces, open-hearth furnaces, a blooming mill, power facilities and associated infrastructure. In 1941, shortly before the German occupation, important machinery and employees were evacuated to the east. The plant was left severely damaged during the occupation from August 1941 to February 1944, after which reconstruction began. Postwar development enlarged the facility into one of Europe’s leading integrated steelworks. Blast Furnace No. 7 was completed in 1962, No. 8 in 1970 and No. 9 in 1974. The complex subsequently included mining operations, ore-concentration plants, coke production, sinter shops, blast furnaces, steelmaking units, casting facilities and rolling mills. After Ukrainian independence, restructuring combined the Kryvyi Rih state mining and metallurgical combine with the Novokrivorozhsky mining and processing combine in 1996 and incorporated the Kryvyi Rih coking plant in 1997. Although these units had long been designed to operate together, the formal consolidation created the enterprise commonly known as Kryvorizhstal. The company’s privatization became a major political and economic controversy. In 2004, an Investment-Metallurgical Union consortium acquired Kryvorizhstal in a sale criticized for its restricted process and relatively low price. The consortium was linked to Ukrainian industrial groups associated with Rinat Akhmetov and Viktor Pinchuk. Following a change in political leadership, the transaction was challenged successfully in court. A second auction was held in October 2005, with Mittal Steel submitting the winning bid for a 93.02 percent interest. The company was renamed Mittal Steel Kryvyi Rih in 2006 and then ArcelorMittal Kryvyi Rih after the creation of ArcelorMittal in 2007. ArcelorMittal invested in production capacity, reliability and environmental infrastructure. Major programs covered coke ovens, blast furnaces, oxygen production, pulverized-coal injection, continuous casting, rolling mills, gas cleaning, ore beneficiation, mine equipment and tailings management. The company’s output has nevertheless fluctuated with international steel demand. During the 2008–09 global recession, crude-steel production and financial performance declined sharply before recovering in 2010. The COVID-19 period and the Russian invasion of Ukraine created additional operational constraints. After February 2022, the company deferred several major capital projects, including a planned pellet plant, while prioritizing projects required to prevent production stoppages and manage mining waste safely. Construction of the Tretya Karta tailings facility was treated as strategically important because it would allow continued ore extraction and reduce reliance on older storage sites. The plant has continued to operate under wartime conditions, although exports, staffing, logistics, investment and production have been affected by military risk, employee mobilization and weak European steel demand.

1. 2022Investment program disrupted by full-scale invasion

   The company deferred several major projects while retaining expenditure needed for operational continuity and tailings management.

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2. 2020Mauro Longobardo becomes chief executive

   Mauro Longobardo took office as chief executive on 18 February.

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3. 2007Company adopts the ArcelorMittal name

   The subsidiary was renamed after Mittal Steel combined with Arcelor to create ArcelorMittal.

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4. 2005Mittal Steel acquires controlling stake

   Following annulment of the first sale, Mittal Steel won a televised re-auction for a 93.02 percent stake.

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5. 2004First privatization

   Kryvorizhstal was sold to an Investment-Metallurgical Union consortium in a transaction later challenged over the conduct of the auction.

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6. 1997Kryvyi Rih coking plant incorporated

   The coking operation joined the consolidated enterprise, strengthening its integrated production model.

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7. 1996Mining and metallurgical units consolidated

   The state metallurgical combine was formally combined with the Novokrivorozhsky mining and processing combine.

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8. 1974Blast Furnace No. 9 commissioned

   The furnace was among the world’s largest at the time, reinforcing the complex’s international industrial significance.

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9. 1970Blast Furnace No. 8 completed

   The new furnace helped make the works one of Europe’s largest steel facilities.

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10. 1962Blast Furnace No. 7 completed

    The addition expanded the plant’s ironmaking capacity during its postwar growth phase.

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11. 1944Postwar reconstruction begins

    After the end of the German occupation, the heavily damaged plant was rebuilt and returned to industrial production.

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12. 1934First metal produced

    The Kryvyi Rih works produced its first metal in August, marking the beginning of the modern steel complex.

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13. 1931Construction of the integrated works ordered

    Soviet authorities formally ordered construction of a combined mining and metallurgical facility.

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14. 1881Industrial iron-ore extraction begins

    Large-scale commercial extraction began as railway infrastructure connected the basin with wider markets.

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15. 1781Iron-ore resources documented in the Kryvyi Rih region

    The region’s iron-ore wealth was identified through early surveys, laying the geological foundation for its later mining and steel industry.

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A vertically integrated Ukrainian steel producer positioned around domestic iron-ore resources, large-scale production, supply security and the manufacture of construction-oriented long products.

• RebarLong steel products

  Reinforcing bar is one of the company’s principal finished products and its largest position in the Ukrainian market. It is supplied for reinforced-concrete construction and infrastructure applications in a range of grades, diameters and lengths. The product is made from billets produced within the integrated works and is distributed domestically and through export channels when logistics and market conditions permit.

• Wire rodLong steel products

  Wire rod is a hot-rolled, coiled steel product used by downstream manufacturers for wire, mesh, fasteners and other drawn or formed products. ArcelorMittal Kryvyi Rih is identified as Ukraine’s leading producer of wire rod, making the line strategically important to domestic industrial supply and regional exports.

• Sections and anglesStructural steel

  The company produces structural long products including sections and angles for construction, engineering, fabrication and industrial frameworks. These products are manufactured through the site’s rolling operations and complement its rebar and wire-rod portfolio.

• StripsRolled steel

  Strips are rolled steel products supplied for industrial and fabrication uses. Their production forms part of the company’s broader rolling portfolio and reflects the plant’s ability to serve customers beyond the core construction-rebar segment.

• BilletsSemi-finished steel

  Billets are continuously cast semi-finished products used internally as feedstock for rolling and may also be sold to other steel processors. They connect the plant’s steelmaking and rolling stages and support the company’s integrated production model.

• Iron ore concentrateIron ore

  Iron ore concentrate is produced by mining and beneficiation operations in the Kryvyi Rih basin. It supplies the company’s own ironmaking chain and may support external customers depending on production, transport and export conditions.

• 2022Prioritize essential operations and defer selected capital projects during wartimeStrategy

  Russia’s full-scale invasion disrupted industrial logistics, export routes, staffing and investment planning. Several large development projects had been scheduled before the invasion, including a pellet plant.

  What changed. The company temporarily suspended or deferred projects that were not essential to immediate production, while continuing work required to prevent stoppages and maintain safe waste storage.

  Aftermath. The Tretya Karta tailings project remained a priority because additional capacity was necessary for continued mining and could allow older facilities to be retired.

  Planned investment in Tretya Karta tailings facility. More than US$150 million (2022 onward)

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• 2005Mittal Steel chooses to acquire Kryvorizhstal through the second privatization auctionM&A

  The first sale of the Ukrainian steelmaker had been annulled after a legal and political challenge. A new auction created an opportunity for international steel groups and Ukrainian investors to compete openly for control.

  What changed. Mittal Steel submitted the winning bid and acquired a 93.02 percent stake in the company.

  Aftermath. The acquisition brought the plant into the Mittal Steel group and was followed by the 2006 name change to Mittal Steel Kryvyi Rih and the 2007 adoption of the ArcelorMittal name.

  Purchase price. UAH 24.2 billion, approximately US$4.81 billion at the time (24 October 2005)

  • Arcelor — Arcelor had previously participated in a bid for the company but did not win the re-auction.
  • Tata Steel — Tata Steel had also expressed interest in the earlier privatization process but did not acquire the company.
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• 2005Controversial first privatization of KryvorizhstalControversy

  The 2004 privatization attracted criticism from Ukrainian opposition groups and foreign observers, who argued that the process undervalued state property and excluded stronger bidders through technical conditions. A court annulled the transaction in 2005, and the company was sold again through a more competitive auction.

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• 2022ArcelorMittal Kryvyi Rih temporarily suspends or defers major investment projects after Russia's full-scale invasion

  The company paused several major development projects because of the invasion, while continuing projects considered essential to mining continuity and environmental safety.

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• 2022ArcelorMittal Kryvyi Rih resumes steelmaking activity during the Russian invasion

  The plant worked to restart and maintain production despite nearby military threats and severe disruption to Ukraine’s industrial and logistics systems.

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• 2020Mauro Longobardo appointed chief executive of ArcelorMittal Kryvyi Rih

  Mauro Longobardo took over as chief executive effective 18 February 2020.

  Leadership change
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• 2005Mittal Steel wins the re-auction of Kryvorizhstal

  Mittal Steel acquired a 93.02 percent stake in the re-auction, replacing the consortium that had purchased the company the previous year.

  M&ARegulation
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1. ArcelorMittal Kryvyi Rih
2. ArcelorMittal Ukraine official website
3. BBC World Service: Testing the mettle of Ukraine's steel city
4. Reuters coverage of ArcelorMittal Kryvyi Rih during the invasion