2023-11-10 05:15:00
ArcelorMittal’s decarbonization projects for its manufacturing sites in Ghent (Belgium) and Dunkirk (France) are accelerating and have taken advantage of the one planned for Gijón, which was the first to obtain community authorization for the receipt of public aid with charge to European recovery funds.
The multinational indicated yesterday that “it has approved the necessary investments to begin the preparatory work” at the Dunkirk and Ghent plants” for “the replacement of blast furnaces with direct reduction iron ore (DRI) plants and electric furnaces”, and that “they are moving forward,” he said, “towards the FEED phase,” an acronym that refers to the basic engineering development stage once it has been determined that the project is economically and technically feasible.
In the case of Asturias, the future electric furnace that will replace the current Gijón steel plant has been in this situation since July 27, and whose investment has already been approved by the management of the multinational in Luxembourg. However, The future direct reduction plant (DRI) has not yet received the company’s final approval., which must replace blast furnace B, and which is the largest investment of the total of 1,000 million planned for the Asturian factory. For the DRI of Gijón, the Government of Spain approved on April 4 (with prior authorization from the European Commission) the granting of 450 million in public aid.
In the case of Ghent and Dunkirk, the multinational “has approved capital expenditure to begin ‘on-site’ preparation work” and for increasing “connectivity with third-party energy supplies in anticipation of an increase in consumption in the future,” the company said. The company did not mention yesterday the decarbonization of the Asturian factory.
The Ghent-Dunkirk axis is considered a key piece in ArcelorMittal’s European strategy. In the case of the Gijón factory, members of the management expressed to the labor representation on Tuesday in Extebarri, according to union testimonies, that at this moment the priority is the already approved electric oven. To commit to the DRI, Arcelor is waiting to clear up uncertainty about the cost of energy (especially green hydrogen) and the possibility of redefining the execution deadlines, which expire in 2026.
The group earns 57% less, but is optimistic in the medium and long term
Arcelor declared a net profit of 3,885 million in the first nine months, 57% less than a year before. In the third quarter, the net result stood at 929 million dollars, 50.05% lower than that obtained in the same period of 2022. The company attributed this to the negative differential in the sales price and costs, a decrease of 3, 7% in steel shipments and the “challenging market environment.” The steel company stressed, however, that “it remains positive about the prospects for steel demand in the medium and long term” and assured that “it is supported by its solid financial position” and that “it remains focused on the execution of its growth strategy with capital “. ArcelorMittal said that, despite the lower profit recorded, “the company continues to demonstrate structurally improved profitability”, with a gross operating result (“ebitda”) between June and September of 1,865 million (lower than the 2,605 of the previous quarter and the 2,660 of the third quarter of 2022, but higher than analysts’ forecast) and an “ebitda” per ton of $136, which is, he said, “above the group’s long-term historical averages”, which “reflects” , he noted, “the benefits of portfolio optimization and strategic projects.” Between January and September, the “ebitda” totals 6,292 million, 51.23% lower than the same period in 2022. Sales in the first nine months decreased by 14.66% year-on-year (amounted to 53,723 million) and In the third quarter, the turnover (16,616 million dollars) was lower than in the second (18,606) and 12.43% lower than in the third quarter of 2022. Crude steel production increased in Europe by 7.7% compared to to the second quarter of this year, but the slow entry into activity of the two blast furnaces in Gijón and Dunkerque that suffered fires meant that manufacturing fell by 6.5% compared to the third quarter of 2022. Aditya Mittal, CEO of ArcelorMittal, announced yesterday that it has decided to “entrust an independent external entity to carry out a comprehensive safety audit” at the company following the accident at the Kostenko mine in Kazakhstan.
Figures
3,885 million dollars
ArcelorMittal profit in the first nine months. In the third quarter it earned 929 million.
6,292 million dollars
Gross operating result until September, 51.23% lower than in the same period of 2022.
53,723 million dollars
These are sales until September 30. They were 14.66% lower than a year before.
7.5 million tons
Production in Europe in the third quarter. It grew 7.7% compared to the previous quarter, but was 6.5% below 2022 due to the slow entry into activity of the Gijón and Dunkerque furnaces.
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