ARSELORMITTAL KRYVYI RIH PAT
Press-releases
Paramjit Kahlon, Chief Executive Officer of ArcelorMittal Kryvyi Rih, about politics and business
ArcelorMittal Kryvyi Rih continues Time To Talk video project that is the series of interviews of top-managers of the company. Please find hereby excerpts of video interview of Paramjit Kahlon, Chief Executive Officer, ArcelorMittal Kryvyi Rih.
- Mr. Kahlon, after the Presidential elections, there will be Parliament elections in Ukraine. Is there an impact of political fever on business? And if so, how?
- It is very good, that democratic processes in Ukraine are developing and vast majority of people - 73% elected the President. As far as I remember, no other President in this country had such a huge support. It means that people trust him and wait for changes in Ukraine that might bring the country to the level of leading European countries. This is difficult path, but you need to start moving. So, new President was elected - this is Mr. Zelenskyi.
Concerning the elections to Verkhovna Rada, I can say that when new government will appear, all issues will be solved much faster than now. Pre-election fever commonly found in any country of the world. For a few months every-one is involved in election campaign, communication with voters. It is interesting for people. The authorities in charge of organization and holding of elections also work actively. So, the whole country starts to live in different rhythm. During this period, the activities in certain spheres are really subdued. However, it's good, when the parliamentary candidates set a new direction of thinking. It is obvious that certain spikes in activities in decision making are observed everywhere during the elections. However, after the new government takes its place, everything will return to normal.
- But we see, that currently some politicians try to score some "points" manipulating with such topics like environment, increase in salaries, decrease in utility rates etc. Does the Company face similar issues? If yes, what is the position the Company holds in such cases?
- Politicians need the topics to become well-known in government and in society. That is why they often try to attract attention of people to hard questions that might help them to become more popular. It is not uncommon when a lot of fake news, garbled information is spread. They use it to distract people's attention.
What is the current problem for Ukraine? People are irritated by utilities prices, they just do not have a possibility to pay their electricity and utilities bills. Inflation rate is high, the prices for consumer goods are also rising. But instead of solving these problems, the politicians are often do not know what to promise. They select "easy" topics to draw the attention to, like environment, salaries.
Instead of this, it is necessary to pay more attention to development of infrastructure, roads construction, development of railway network and ports. The country has to be made attractive for the foreign investors who have to feel free when travelling by plane or by car here. If some potential investor decides to come to Kryvyi Rih, he has to fly to Kyiv, and then to travel by motor road. And it is in so bad condition comparing to the roads in the West or on other continents that it will reduce to zero his wish to invest in this country. The situation is really terrible. I travel between Kyiv and Kryvyi Rih 3-4 times per month there and back, and I imagine well the impression of people who travel for the first time. I think it is necessary to focus on really important topics and actual problems. And the government and politics must pay more attention to them.
The investments can assist in solving many issues faster, either unemployment or infrastructure development. That is why, it is better to get direct foreign investments, so the government will have funds for the progress.
- What can you say about the achievements of the company in environment protection?
- We have succeeded to do a lot for almost 14 years of ArcelorMittal activities in this country. We reduced waste water discharge by 81% and dust emissions by 48%. And we do not stop working in this sphere. I can say, that there is no other company in Ukraine except for ours to invest such amounts of money. At our plant during the last decade we have been implementing two-three big projects simultaneously. Total cost of investments amounts to almost 10-12 bn. UAH.
Currently, we are working on construction of two continuous casting machines. We are building new rolling mill, which will enable improvement in competitiveness of ArcelorMittal Kryvyi Rih in terms of cost. These projects will not only improve the efficiency and reduce the cost of the Company, but also reduce the environmental footprint as construction is taking place with the application of new advanced technologies.
We have taken commitment that our emission level in Ukraine in 2025 will be the same as at the plants in Western Europe. But in order to achieve this, we need to continue investments and implementation of new technologies here. For this we need support of people and the government. We will succeed to cope with this by common efforts.
- In your opinion, is it possible for a successful businessman to become an effective politician? Have you ever thought about a career in politics, for example, as Parliament Member or, maybe, the President?
- Why not? If a person, who used to run business, chooses politics, I think, he will be able to prove his skills of successful and efficient leader. When you run a company, you always work on cost, aim to implement new technologies and dig into every single process. If such person becomes a leader of the state, then he or she will rule the country as a real company therefore achieving great results. Look at Donald Trump. He is a businessman. As the President of the United States, he declared his motto to be "America is above all!" Now, take a look at the decisions and changes he makes. Of course, businessmen know more about problems and the ways to solve those. They have a completely different mindset. But if even people from another sphere will go to politics, they also may be good leaders. However, it will take a lot of time to fight for results and pursue the objectives.
- Let us talk more about you. What are you dreaming of to do in future?
- Even if I ever dreamt of politics, I should have decided on where exactly I would start my political career. I certainly cannot do it in Ukraine, because I am not a resident. But, generally, why not? I do not know, I have not decided yet. I think I have a lot of things I need to do in business like we did it here, in Ukraine, for ArcelorMittal Kryvyi Rih in last years. My objective is to make this plant one of the best in the world. And I will fully dedicate myself to this work until I achieve it.
- What political solutions and reforms are essential to attract foreign investors in Ukraine? What actions should be taken by the government?
- I drew this analogy several times before: investors are like pigeons. They always land one by one, but they fly away all together at once with the very first sound of danger. If government creates favorable environment meaning infrastructure, economy, tax holiday and some special methods of work for potentially attractive regions, then investors will sure enough come. In this case, the government will have to ensure free and fair taxation system, timely automatic VAT refund and no "pressure" on business from politicians. If government takes really good care of these issues, then they will absolutely attract new investors.
Ukraine is a beneficial country for investment. I would call it a gate between East and West. It has a strategic location, just near the Black Sea. This is the country of opportunities. Investors will surely come, if Ukraine is reliably presented as attractive one for investment. The country grants many opportunities in agricultural sector, mining and metallurgical industries, IT and services. No matter which industry you choose, Ukraine will have a huge potential because highly qualified specialists live and work here.
I believe that political willpower and development plan will help Ukraine greatly. I am confident that if all programs I have just mentioned get implemented, then, eventually, Ukraine will definitely become the best country in Europe.
ArcelorMittal Kryvyi Rih continues Time To Talk video project that is the series of interviews of top-managers of the company. Please find hereby excerpts of video interview of Paramjit Kahlon, Chief Executive Officer, ArcelorMittal Kryvyi Rih.
- Mr. Kahlon, after the Presidential elections, there will be Parliament elections in Ukraine. Is there an impact of political fever on business? And if so, how?
- It is very good, that democratic processes in Ukraine are developing and vast majority of people - 73% elected the President. As far as I remember, no other President in this country had such a huge support. It means that people trust him and wait for changes in Ukraine that might bring the country to the level of leading European countries. This is difficult path, but you need to start moving. So, new President was elected - this is Mr. Zelenskyi.
Concerning the elections to Verkhovna Rada, I can say that when new government will appear, all issues will be solved much faster than now. Pre-election fever commonly found in any country of the world. For a few months every-one is involved in election campaign, communication with voters. It is interesting for people. The authorities in charge of organization and holding of elections also work actively. So, the whole country starts to live in different rhythm. During this period, the activities in certain spheres are really subdued. However, it's good, when the parliamentary candidates set a new direction of thinking. It is obvious that certain spikes in activities in decision making are observed everywhere during the elections. However, after the new government takes its place, everything will return to normal.
- But we see, that currently some politicians try to score some "points" manipulating with such topics like environment, increase in salaries, decrease in utility rates etc. Does the Company face similar issues? If yes, what is the position the Company holds in such cases?
- Politicians need the topics to become well-known in government and in society. That is why they often try to attract attention of people to hard questions that might help them to become more popular. It is not uncommon when a lot of fake news, garbled information is spread. They use it to distract people's attention.
What is the current problem for Ukraine? People are irritated by utilities prices, they just do not have a possibility to pay their electricity and utilities bills. Inflation rate is high, the prices for consumer goods are also rising. But instead of solving these problems, the politicians are often do not know what to promise. They select "easy" topics to draw the attention to, like environment, salaries.
Instead of this, it is necessary to pay more attention to development of infrastructure, roads construction, development of railway network and ports. The country has to be made attractive for the foreign investors who have to feel free when travelling by plane or by car here. If some potential investor decides to come to Kryvyi Rih, he has to fly to Kyiv, and then to travel by motor road. And it is in so bad condition comparing to the roads in the West or on other continents that it will reduce to zero his wish to invest in this country. The situation is really terrible. I travel between Kyiv and Kryvyi Rih 3-4 times per month there and back, and I imagine well the impression of people who travel for the first time. I think it is necessary to focus on really important topics and actual problems. And the government and politics must pay more attention to them.
The investments can assist in solving many issues faster, either unemployment or infrastructure development. That is why, it is better to get direct foreign investments, so the government will have funds for the progress.
- What can you say about the achievements of the company in environment protection?
- We have succeeded to do a lot for almost 14 years of ArcelorMittal activities in this country. We reduced waste water discharge by 81% and dust emissions by 48%. And we do not stop working in this sphere. I can say, that there is no other company in Ukraine except for ours to invest such amounts of money. At our plant during the last decade we have been implementing two-three big projects simultaneously. Total cost of investments amounts to almost 10-12 bn. UAH.
Currently, we are working on construction of two continuous casting machines. We are building new rolling mill, which will enable improvement in competitiveness of ArcelorMittal Kryvyi Rih in terms of cost. These projects will not only improve the efficiency and reduce the cost of the Company, but also reduce the environmental footprint as construction is taking place with the application of new advanced technologies.
We have taken commitment that our emission level in Ukraine in 2025 will be the same as at the plants in Western Europe. But in order to achieve this, we need to continue investments and implementation of new technologies here. For this we need support of people and the government. We will succeed to cope with this by common efforts.
- In your opinion, is it possible for a successful businessman to become an effective politician? Have you ever thought about a career in politics, for example, as Parliament Member or, maybe, the President?
- Why not? If a person, who used to run business, chooses politics, I think, he will be able to prove his skills of successful and efficient leader. When you run a company, you always work on cost, aim to implement new technologies and dig into every single process. If such person becomes a leader of the state, then he or she will rule the country as a real company therefore achieving great results. Look at Donald Trump. He is a businessman. As the President of the United States, he declared his motto to be "America is above all!" Now, take a look at the decisions and changes he makes. Of course, businessmen know more about problems and the ways to solve those. They have a completely different mindset. But if even people from another sphere will go to politics, they also may be good leaders. However, it will take a lot of time to fight for results and pursue the objectives.
- Let us talk more about you. What are you dreaming of to do in future?
- Even if I ever dreamt of politics, I should have decided on where exactly I would start my political career. I certainly cannot do it in Ukraine, because I am not a resident. But, generally, why not? I do not know, I have not decided yet. I think I have a lot of things I need to do in business like we did it here, in Ukraine, for ArcelorMittal Kryvyi Rih in last years. My objective is to make this plant one of the best in the world. And I will fully dedicate myself to this work until I achieve it.
- What political solutions and reforms are essential to attract foreign investors in Ukraine? What actions should be taken by the government?
- I drew this analogy several times before: investors are like pigeons. They always land one by one, but they fly away all together at once with the very first sound of danger. If government creates favorable environment meaning infrastructure, economy, tax holiday and some special methods of work for potentially attractive regions, then investors will sure enough come. In this case, the government will have to ensure free and fair taxation system, timely automatic VAT refund and no "pressure" on business from politicians. If government takes really good care of these issues, then they will absolutely attract new investors.
Ukraine is a beneficial country for investment. I would call it a gate between East and West. It has a strategic location, just near the Black Sea. This is the country of opportunities. Investors will surely come, if Ukraine is reliably presented as attractive one for investment. The country grants many opportunities in agricultural sector, mining and metallurgical industries, IT and services. No matter which industry you choose, Ukraine will have a huge potential because highly qualified specialists live and work here.
I believe that political willpower and development plan will help Ukraine greatly. I am confident that if all programs I have just mentioned get implemented, then, eventually, Ukraine will definitely become the best country in Europe.
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ArcelorMittal Kryvyi Rih PAT published this content on 20 June 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 June 2019 08:08:06 UTC
