ArcelorMittal has announced it will cease operations at its steel plant in Kryvyi Rih, Ukraine, following a series of missile attacks that have resulted in fatalities, injuries, and significant damage to the facility. The Luxembourg-based company cited the recent strikes, including one on September 21 that killed five employees and injured 17 others, as the primary reason for the closure. The incident occurred amid heightened hostilities, with Russia carrying out heavy strikes in retaliation for Ukrainian attacks on Russian oil infrastructure.
The Kryvyi Rih steel plant, located approximately 400 kilometers southeast of Kyiv, is Ukraine’s largest operational steel facility. It produces long steel rods and beams for construction and operates an iron ore mine. Prior to the outbreak of the full-scale war, the plant produced 4.9 million tonnes of steel in 2021, generating $4.1 billion in sales. However, production has decreased by around two-thirds since 2022 due to ongoing conflict-related disruptions including blackouts, missile attacks, and the closure of Ukrainian ports.
ArcelorMittal has reported that the facility has been targeted by missile attacks four times within five weeks. The company also stated that it had formally requested protection from the Ukrainian government on at least six occasions during the war but was unable to secure sufficient safeguards. A letter from ArcelorMittal to Ukrainian authorities highlighted the constant danger faced by employees, who work under frequent air-raid sirens with uncertainty about their safety. Additional challenges such as tax burdens and tariffs have further undermined the plant’s economic viability.
The decision to shutter the plant is expected to result in a $1 billion impairment charge for ArcelorMittal. Despite the company injecting $700 million in cash and using $500 million in reserves to sustain operations, continuing the plant’s function became unsustainable both from a safety and economic standpoint.
Kryvyi Rih, which has been specifically named as a target by Russian government posts in recent weeks, is notably the hometown of Ukrainian President Volodymyr Zelenskyy. The city’s steelworks hold symbolic and strategic significance amidst the conflict. The closure of Kryvyi Rih follows Russia’s earlier capture of two of Ukraine’s largest steel plants, Azovstal and Illyich, during the 2022 siege of Mariupol.
The escalation in attacks on industrial infrastructure has been part of broader military and retaliatory actions by both sides. The strike on the Kryvyi Rih plant came shortly after Ukraine launched its largest drone attack on Moscow, which reportedly killed at least two people and damaged an oil refinery. The cycle of attacks has intensified the humanitarian and operational challenges faced by Ukraine’s industrial sector amid ongoing warfare.