First customer meet at Mittal Steel Kryviy Rih

As part of their “close to customer” marketing and sales approach, Mittal Steel organized the first customer meet at Kriviy Rih steel works in Ukraine, on 14th of July, 2006. OJSC Mittal Steel Kryviy Rih, employing 57,000 people, is the largest enterprise in Ukraine, and became part of Mittal Steel group towards the end of 2005 for a deal worth $4,8 billion. This first customer meet, has brought 94 guests from several different countries, including SteelOrbis, together at the steel works in Kriviy Rih. Mittal Steel had organized a program to take the guests to the Blast Furnace no.9, the biggest in Ukraine with 10,000 tons of basic pig iron capacity per day, then to the iron ore mines where the reserves are good for another century according to the officials, and finally to the wire rod rolling line. Mr. Narendra Chaudhary, the General Director of Mittal Steel Kryviy Rih who has also headed Mittal Steel plants in Kazakhstan and Romania previously, has informed the guests that there will be enormous changes at the plant during the next five years time. Mittal Steel plans to invest about $1.2 billion to modernize the steel plant and mine more iron ore. The company currently produces 320,000 tons of reinforcing bars, 160,000 tons of wire rods, 90,000 tons of steel billets, and 20-25,000 tons of other sections per month. Total monthly product output is about 600,000 tons, which lets the company have an annual marketable rolling quantity of about 6,3 million tons. This figure is going to be increased to 9 million tons by the year 2010 according to Mr.Y.P.Kumar the marketing director. Mr.Kumar also added that the company will pay necessary attention to the local market in Ukraine, but on the other hand is in the process of completing all necessary homologation and certification requirements for penetration into GCC and EU markets as well. Their intention is to solve the channelization, and delivery issues by moving into FOB and CFR deliveries rather than CPT terms, and reach an all time high sales figure within the next 6 months time. This corresponds to an increase of approx. 20 percent on sales. In a special interview with SteelOrbis, Mr.Chaudhary reconfirmed the company's plans to invest in flat rolled production within the next three years and target the automotive industry. He also added that the relations with workers and trade unions had significantly improved since the end of last year, and that they would still have continued to work and develop relationships.