OREANDA-NEWS. April 08, 2010. According to a report established by the State Property Fund of Ukraine (SPFU), OJSC “ArcelorMittal Kryviy Rih” fulfilled all its investment obligations for 2009, in line with its SPA. The inspection was conducted between March 23 and 25, 2010 and determined that no violation of obligations has been committed in 2009.

The report was signed by the SPFU representatives and the company management and states that all obligations on SPA items have been met, except for those that were postponed due to force-majeure. These were mentioned in the Additional SPA signed on May 14, 2009. Social obligations, as well as conditions in terms of production volumes, workers safety, environmental protection, and the post-privatization development program were declared fulfilled.

The above mentioned social obligations include: timely payment of all salaries as well as taxes and payments to the state trust funds. ArcelorMittal Kryviy Rih maintained both the company’s social infrastructure (health centres, sanatorium, rest areas, and dormitories) and health care programs. ArcelorMittal Kryviy Rih reduced production when required (unsafe working conditions) and ensured expenditures for initiatives aimed at improving occupational safety. It also continued the construction of housing and provided the workers with free housing and health insurance.

Jean Jouet, CEO of OJSC “ArcelorMittal Kryviy Rih”, said: ”Despite the challenging economic conditions last year, we fulfilled all our obligations in the social area. This proved once again that we are a responsible Company”.

In 2009 ArcelorMittal Kryviy Rih spent 176 million UAH on maintenance of its social infrastructure (investment initially allocated: 166 million UAH). Additionally, according to the provisions of the Collective Labour Agreement, the Company allocated 92 million UAH for the maintenance and repair of existing infrastructure, purchasing equipment, etc. An additional 6 million UAH were allocated for the social development of the city of Kryviy Rih, in line with the Protocol of cooperation for 2009-2015 signed by the company and the city council.

In 2010 the company will continue its social development program, which was developed to benefit employees and the local community. Within the framework of this programme, 178 million UAH will be allocated for the development of social infrastructures, 95 million UAH to improve existing infrastructures and 15 million UAH to further encourage the social development of the city of Kryviy Rih.

Two of the biggest projects for 2010 are:

• The completion of the new company hospital (Q3 2010) which will be equipped with modern medical equipment (Siemens) for mammography and x-ray tests. The total project cost was estimated at 26 million UAH.

• Completion of two buildings with 164 apartments providing free housing possibilities for employees (Q3 2010). The project was allocated about 37 million UAH.

Olexandr Zozulya, Director for Social Issues, ArcelorMittal Kryviy Rih, said: “Our social infrastructure was the biggest in the industry before privatization. ArcelorMittal has preserved and developped this legacy in line with the Group values. With expenditures of over 700 million UAH for maintenance, we did not save costs on social projects even during the crisis and fulfilled in 2009 all our social commitments taken in “pre-crisis” times in spite of the difficult financial situation the company was facing.”