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ArcelorMittal: increase in freight rates is a black flag for p…
ArcelorMittal: Increase in freight rates is a black flag for the industry.
General Director of “ArcelorMittal Kryvyi Rih” Mauro Longobardo warned: the indexation of tariffs for freight rail transportation by 37% will ultimately deprive Ukrainian producers of competitiveness and may kill the mining industry.
“In another situation, I would say that's a red flag. But he is even black. We can't pass the prices from the additional tariffs on to our final product,” says Longobardo.
ArcelorMittal has invested almost $1 billion in the Ukrainian enterprise over the past 4 years, but this money is not intended to cover other people's expenses, says Longobardo.
His company transports 8 million tons of raw materials every year, and the tariff increase means hundreds of millions of dollars in additional costs.
The company is already losing customers, and is forced to reduce prices even into the red. And part of the products have already been discontinued, because they have become more expensive than the market price.
He called on the authorities to consider alternatives: transparent tariff planning, increasing the efficiency of the UZ and involving international partners in modernization.
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General Director of “ArcelorMittal Kryvyi Rih” Mauro Longobardo warned: the indexation of tariffs for freight rail transportation by 37% will ultimately deprive Ukrainian producers of competitiveness and may kill the mining industry.
“In another situation, I would say that's a red flag. But he is even black. We can't pass the prices from the additional tariffs on to our final product,” says Longobardo.
ArcelorMittal has invested almost $1 billion in the Ukrainian enterprise over the past 4 years, but this money is not intended to cover other people's expenses, says Longobardo.
His company transports 8 million tons of raw materials every year, and the tariff increase means hundreds of millions of dollars in additional costs.
The company is already losing customers, and is forced to reduce prices even into the red. And part of the products have already been discontinued, because they have become more expensive than the market price.
He called on the authorities to consider alternatives: transparent tariff planning, increasing the efficiency of the UZ and involving international partners in modernization.
DUST⚡️Ukraine | Send news
