ArcelorMittal Kriviy Rih, Ukraine-based subsidiary of the world's largest integrated metals and mining company ArcelorMittal, saw its net profit in 2010 increase to UAH 1.2 billion (about $150.9 million) from a net loss of about UAH 120 million ($15.09 million) registered in 2009, ArcelorMittal Kriviy Rih's CEO Rinat Starkov said, adding that the gross profit of the company in 2010 went up by 147 percent year on year to UAH 4.43 billion ($557 million). The amount of capital investment by ArcelorMittal Kriviy Rih rose to UAH 1.738 billion (about $218.5 million) in 2010.
In 2010, ArcelorMittal Kriviy Rih's steel output went up by 21.7 percent year on year to 6.133 million mt, while its steel product deliveries increased to 5.368 million mt, up from 4.436 million mt in 2009. About 85 percent of its deliveries were directed to the export markets (in 2009 - 83 percent), with shipments carried out to 60 countries.
According to Mr. Starkov, in 2011 ArcelorMittal Kriviy Rih plans to increase its steel product output by six percent year on year, which corresponds to the growth in the export markets, while its profit is expected to grow by 10 percent. Also, the steelmaker is set to increase the amount of capital investment for the modernization of its production in 2011, which includes the commissioning of its continuous caster in October.
Mr. Starkov noted that the most critical issue for ArcelorMittal Kriviy Rih in 2010 was the money owed to the company by Ukraine in terms of unpaid VAT reimbursements. Over the past year, the money owed to the company by the state increased by about UAH 300 million ($37.7 million) each month, he said.