General Director of “ArcelorMittal Kryviy Rih”: “We were under pressure, so we shared with law enforcement agencies”
General Director of OJSC “ArcelorMittal Kryviy Rih” Paramzhit Kalon told during a briefing about extortion on the part of the prosecutor’s office, the damage caused by “Ukrzaliznytsia” railway “pads” and investment plans. Reporter BiznesTsenzor recorded the sharpest expressions of the foreigner in Ukraine.
The stated theme of the press conference, the General Director of PJSC “ArcelorMittal Kryvyi Rih” Paramzhita Kalona, which took place on December 9 was the start of construction of a second continuous casting machine. However, most of the speech was devoted to Indian pressure government agencies and problems with rolling stock “Ukrzalinytsi”.
“ArcelorMittal Krivoy Rog”, the former “Krivorozhstal” – the largest steel plant in the country. After re-privatization in 2005, the plant has got the international iron and steel holding ArcelorMittal Indian businessman Lakshmi Mittel.
Works finished 2015 with a net profit of 1.38 billion USD and increased its revenues by 25.9% – to 46.26 billion USD. 95% stake in the plant belongs to the company Mittal Steel Germany GmbH, which is part of the ArcelorMittal international holding.
“Arcelor Mittal Krivoy Rog” – the largest producer of rolled steel in Ukraine, specializes in the production of long products, in particular – rebar and wire rod.
BiznesTsenzor results of theses performances Paramzhita Kalona.
Indicators – 7 million tons
The factory in 2016 to release 7 million tons of steel. This is 10% more than planned and 12% more than in 2015.
Last time as released in the pre-crisis 2007.
Plans – power increase of 1400000 tonnes per year
The plant began construction of a second continuous casting machine (CCM). Power Caster will be 1400000 tonnes per year. Construction completed in the second quarter of 2018. The machine will cost $ 100 million.
Another $ 25 million will be invested in the blooming №2 – a powerful high-rolling mill large.
In just 10 years, Arcelor has invested in the plant (including the purchase amount) $ 10.4 billion, thus being the largest investor in Ukraine history.
The pressure and extortion
80 of our leaders were summoned for questioning by the prosecutor’s office. This pressure is exerted on us, that we share something with these people … Most of them are employees of law enforcement bodies (Kalon did not name the interested parties, saying only that it is law enforcement, in particular prosecutors – BC).
Guide the plant was transferred to the writing of the requirements of this group of law enforcement officers. The attack also involved some kvaziobschestvennye organizations that help extortionists. In particular, these forces recently staged a rally in front of the paid central entrance of the plant (Kalon reported pressure Prime Minister Vladimir Groisman and received from him a verbal support from an Indian word, extortion also notified the Prosecutor General -. BC).
Failure PJSC “Ukrzaliznytsia” to organize the transportation of the plant causes significant losses. For export is 88% of the production. In general the metal is transported through the ports, which is delivered by rail. exports amounted to less of the chronic shortage of cars than it could, since the product does take out.
There are also problems with the transportation of imported raw materials: coke and lime.
Losses of the plant only for the first half are estimated at 217 million USD. Of these funds would be paid 45 million USD. taxes.
We could buy the lime in the Western Ukraine. But do not do this, because it will not come to us. Instead, the lime is purchased in the United Arab Emirates (lime purchase in Crimea denied Kalon – BC).
Given the “poor service”, Arcelor against an increase in railway tariffs. Own cars to buy Arcelor is going.
Rollback of the car – 20%
We – one of the largest customer of Railways. I am surprised by their attitude. In response to a request for KM cars often refuses, citing the lack of them.
However, after the official denial of US, linked with Arcelor “individuals and little-known company” with a proposal to provide the cars. But 5-20% more expensive than the official rate. We are a European company. Emphasize that we never go to such schemes (feels Kalona, according to the scheme with an additional fee for the provision of wagons is ultrasound guidance regions – BC).
The situation with VAT refunds has improved markedly. If the return for December will be held in a timely manner, it will have no problems at all.
During the tenure of Arcelor combine, dust emissions have fallen by 45% and water pollution – by 70%.
Investment climate in Kazakhstan is higher than in Ukraine. With that amount of investment in Kazakhstan is less attitude of the authorities there better not demand bribes, many are investing in the infrastructure, construction of ports, roads and railways (Paramzhit Kalon simultaneously led the Kazakhstan asset group “ArcelorMittal Temirtau” – BC)
“ArcelorMittal Temirtau” works primarily on the domestic market, exported less than half of the production.
Exports to Russia have, but it is extremely small. Prichinva – duty. Break the CIS free trade zone has led to the establishment of export duties of 5%. Anti-dumping investigations against Ukrainian metal – another 9.3%. As a result, favorable offer are rare, if successful fluctuations of the ruble and world prices.
We are ready to invest in the port of “October”. But we do not know when that will be.
Last year Arcelor expressed interest in investing in a specialized sea port “Oktyabrsk” (Nikolaev). The memorandum was signed with the Ministry of Infrastructure. However, the process has stalled. Ministry changed its mind to take berths for rent, and wants to make a concession contract. But only after the parliament adopts new law on concessions.
The information was taken from: ord-ua.com/2016/12/11/gendirektor-arselor-mittal-krivoj-rog-na-nas-davyat-chtobyi-myi-podelilis-s-pravoohranitelyami/