Posted on 03 Jan 2024
Qarmet, formerly ArcelorMittal Temirtau, increased production in December, following its divestment from the steelmaking giant, the Kazakhstan government press service says, without providing tonnages.
“Reserves of ferroalloys and coal have been increased and the shipment of finished products has resumed,” it observes. “During a recent meeting, participants discussed the issues of providing the plant with the necessary raw materials, providing support measures for the export of finished products, taxation, eliminating identified environmental violations and a number of others.”
Around KZT 28.6 billion ($62 million) was already invested last month into stabilising the enterprise’s activities.
Among the main tasks for Qarmet in 2024 will be ensuring the safety of workers, increasing production volumes, reducing the cost of products by concluding new investment contracts and reducing unproductive costs, authorities say.
“In general, within the framework of the new business model, in the coming years, measures will be taken to modernise and reorganise production, radically improve safety indicators and the environmental situation (including switching to gas), and revising the range of products,” the statement concludes.
Last month, ArcelorMittal completed the sale of its Kazakhstan-based Temirtau steel and mining operation to the Qazaqstan Investment Corporation (QIC), a state-controlled direct investment fund (see Kallanish passim). Ownership will later be transferred to the new investor, Qazaqstan Steel Group and its founder Andrey Lavrentiev. ArcelorMittal Temirtau has been renamed Qarmet.
In addition to purchasing the assets, the Kazakh investor is obliged to invest another $3 billion in modernising production and protecting the environment of the region, of which $1.3 billion will be invested in the coming year.
In 2022, Temirtau registered the best result of the last 14 years for rebar production. Volume amounted to 436,000 tonnes, with shipments at 427,000t. The plant also produces hot and cold rolled coil, as well as coated coil.
Source:Kallanish
