ArcelorMittal Halts Kryvyi Rih Operations After Missile Strikes, Plans $1 Billion Impairment
ArcelorMittal has informed the Ukrainian government that it cannot safely restart operations at its Kryvyi Rih steel plant following four recent missile strikes. The company anticipates recording a $1 billion impairment charge.
Steel producer ArcelorMittal announced it has informed the Ukrainian government that operations at its Kryvyi Rih facility cannot be safely and sustainably restarted due to repeated missile strikes. The decision comes after four attacks over five weeks, the latest on September 21st, which resulted in five employee fatalities and 17 injuries, with one remaining in critical condition.
The company cited extensive damage to production facilities and ongoing safety risks to employees as reasons preventing a resumption of operations under its safety and sustainability requirements. ArcelorMittal Kryvyi Rih CEO Mauro Longobardo stated the company's immediate focus is on preserving infrastructure while discussing the facility's future with the Ukrainian government.
Longobardo added that the intention is to maintain the possibility of restarting production should security conditions permit. ArcelorMittal has provided over $700 million to support the continuity of operations at Kryvyi Rih since the start of the war in February 2022.
As a result of the inability to restart operations, ArcelorMittal expects to recognize a non-cash impairment charge of approximately $1 billion. This charge will primarily reflect a reduction in the carrying value of property, plant, and equipment at the Ukrainian operation.