ArcelorMittal has stated that it cannot safely resume operations at the "ArcelorMittal Kryvyi Rih" facility after a series of recent missile strikes.
In a statement dated September 25, the metallurgical company said that the plant had come under fire four times in the past five weeks. As a result of the attacks, employees were killed and injured, and significant damage was caused to production facilities.
According to ArcelorMittal, a total of five people were killed and 17 other employees were injured as a result of these attacks. The company has notified the Ukrainian government that it cannot safely and sustainably resume operations of its Ukrainian subsidiary.
"Since the beginning of the war, our people in Ukraine have been working tirelessly to keep the mines and the plant functioning. In circumstances that most of us find difficult to even imagine, they showed exceptional courage," Mauro Longobardo, CEO of "ArcelorMittal Kryvyi Rih", said in a statement.
The company is negotiating with the Ukrainian authorities on the future of the plant. According to Longobardo, the priority will be to preserve the infrastructure so that after the restoration of peace there will be an opportunity to resume production.
ArcelorMittal expects non-monetary impairment losses of about $1 billion. "They are mainly related to the reduction in the value of ArcelorMittal Kryvyi Rih's property, plants and equipment."
"The statement appeared after a Russian ballistic missile strike on the night of September 22 at another metallurgical enterprise owned by the Ukrainian company Interpipe." The enterprise in Dnipro stopped production due to damage to key equipment and infrastructure.
""Since mid-August, Russian missiles have repeatedly hit large Ukrainian metallurgical enterprises, including "Zaporizhstal", "Kametstal" and the Dnipro Metallurgical Plant. This forced them to suspend their work.
The intensification of attacks on steel plants, infrastructure and logistics has already significantly affected the Ukrainian ferrous metallurgy. In August, pig iron exports from the country decreased to 34 tons against 51,530 tons in July and 196,890 tons a year earlier. Shipments of semi—finished carbon steel products decreased by more than 70% in both monthly and annual terms, to 26,000 tons.
