ArcelorMittal Kryvyi Rih halts production after strikes, expects $1 bln loss
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ArcelorMittal Kryvyi Rih, Ukraine's largest steel producer, announced it is suspending production to protect infrastructure after a series of strikes on its facilities. The company expects about $1 billion in losses from impairment of property, equipment, and production capacity. CEO Mauro Longobardo said the priority is now preserving infrastructure to enable future recovery.
Key Facts
- ArcelorMittal Kryvyi Rih is suspending production, citing a series of strikes on its facilities over recent weeks.
- The company expects about $1 billion in losses related to impairment of property, equipment, and production capacity.
- CEO Mauro Longobardo said the company is shifting priorities from full operations to preserving infrastructure to enable future recovery.
- Three of Ukraine's largest steel plants, which accounted for 90% of the country's steel output, have stopped operations, according to Metinvest's Alexander Vodoviz.
- Russia's Defense Ministry said its forces struck plant workshops that produced steel rolled products for Ukrainian military equipment.
Production Suspension
ArcelorMittal Kryvyi Rih, Ukraine's largest steel producer, announced it is suspending production to protect infrastructure after a series of strikes on its facilities. The company said continuing to operate the plant safely and sustainably is impossible under current conditions. CEO Mauro Longobardo stated that the company is shifting priorities from full operations to preserving infrastructure to enable future recovery. In August, the plant reported damage to key energy and blast furnace facilities after a missile strike and partially halted operations.
Financial Impact
ArcelorMittal expects about $1 billion in losses related to impairment of property, equipment, and production capacity. The impairment reflects the damage to the plant's assets and the suspension of operations.
Industry and Military Context
Alexander Vodoviz, head of the CEO office at Ukrainian steel holding Metinvest, told the Financial Times that three of Ukraine's largest steel plants have stopped operations. These three plants accounted for 90% of Ukraine's steel output, with two owned by Metinvest and one by ArcelorMittal. Russia's Defense Ministry said its forces struck plant workshops that produced steel rolled products for Ukrainian military equipment. The ministry emphasized that strikes target only military, energy, and related infrastructure facilities in Ukraine.
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