Kryvyi Rih, September 9, 2020.Mauro Longobardo, CEO, ArcelorMittal Kryvyi Rih, signed an agreement on the creation of a project and supply of equipment for construction of a modern pellet plant with the management of Sinosteel company (China). On the background of quarantine restrictions in the world, solemn signing took place online with the participation of Vijay Goyal, CEO of ArcelorMittal CIS, Lu Pengcheng, Vice President and Chairman of Sinosteel Engineering & Technology, as well as Hua Guanglin, Executive Vice President of Sinosteel Engineering & Technology.

This marks the start of the project of construction of a modern production facility, the work of which will allow decommissioning of two existing sinter shops of the plant. Thanks to the operation of new pellet plant, the closure of two sinter shops and the reconstruction of sinter shop No. 2, the total volume of pollutant emissions is expected to decrease by 78 thousand tons per year, as well as decrease of the total volume of CO2 emissions by 800 thousand tons per year. The commissioning of pellet plant and the future reconstruction of blast furnace No. 9 will make it possible to achieve a significant reduction in coke consumption in sinter-blast process that will also entail a decrease in pollutant emissions. Investments in the project to build new pellet plant will exceed $ 250 million.

Mauro Longobardo, CEO, ArcelorMittal Kryviy Rih:

- It is a honor for me to run ArcelorMittal Kryviy Rih in such historical moment and be the signee of this large-scale investment project, core of the Sustainable Development Strategy we presented at the beginning of 2020. It took some years to make proper assessment and chose the technology needed to further develop our Steel Operations, but, finally, it has been defined to build from scratch a brand new state-of-the-art pellet plant that will not only allow to upgrade and modernize our operations but will be the flagship of the environmental transformation of the company, the city, the region and Ukraine. I am furthermore proud that this agreement has been signed right in the middle of the one of biggest crisis for the steel industry as it demonstrates the strong company commitment in the long term development, a journey started 15 years ago, that is now officially entering in last stage and despite very adverse business conditions.

ArcelorMittal Kryvyi Rih is the largest company in Ukraine with a full metallurgical cycle, from ore mining up to production of finished rolled products. Therefore, there are several main types of production on the territory of the company, which are mining, sintering, blast furnace, coke-chemical, steel-making and rolling. Sintering generates the largest part of company's emissions (over 75%). The company plans to transfer specifically it to modern technologies as the first priority. For this purpose, the sintering shop No. 2 will be reconstructed (costs will exceed $ 180 million) and pellet plant will be built. Earlier, project feasibility had been prepared, it had been approved by the corporation, laboratory tests (of sintering) had been carried out, a construction site for the new facility had been defined, internal logistics schemes for the supply of raw materials and export of finished goods on the territory of the plant had been approved.

New pellet plant will be able to produce up to 5 million tons of pellets per year. They will be used as raw materials for blast furnaces, partially replacing agglomerate. This will enable not only to increase the productivity of the company's largest blast furnace No. 9, but also to cease production of agglomerate in two sintering shops. Meanwhile, initially it was considered to build a sintering plant as an option. However, after a detailed analysis in the company it was concluded, that the construction of the pellet plant is a more economically and environmentally efficient project.

ArcelorMittal Kryvyi Rih intends to complete the renovation of sintering in 2023. This will lead to a significant reduction in the industrial load on the environment.


China's Sinosteel Corporation develops and processes metallurgical mineral resources, sells and transports metallurgical raw materials and products, renders relevant engineering and technical services and manufactures equipment. The company also provides comprehensive support services for steel industry and other developing industries.