Ukraine’s largest steelworks begins cold shutdown after extensive damage from Russian strikes, saying safe operation is impossible while war continues
The plant will spend two months shutting down safely before mothballing its industrial assets, with any restart dependent on conditions after the war.
ArcelorMittal Kryvyi Rih, Ukraine's largest steelworks, initiated the cold shutdown process on 10 October following four Russian missile attacks on the facility. The assaults resulted in six fatalities, over 18 injuries, and the suspension of primary steel production. The shutdown intensifies the strain on an industry already affected by Russian strikes and hampered exports.
CEO Mauro Longobardo stressed the company's top priority was safeguarding workers and industrial assets, asserting that safe operation was impossible while the conflict persisted.
As of July, ArcelorMittal Kryvyi Rih and its subsidiaries employed approximately 17,000 individuals. In September, the company was assessing potential layoffs, given the cessation of production. Municipal water and heating utilities in the region faced around 1,000 unfilled positions and were directed to assist displaced ArcelorMittal workers in finding new jobs, although it remained uncertain whether these vacancies were recent or the specific roles and salaries involved.
Defense council head Oleksandr Vilkul of Kryvyi Rih stated in late September that the city would reduce spending and halt various projects due to dwindling tax revenues, attributing the pressure to Russian attacks and the lack of export opportunities through seaports. Several significant industrial facilities, including ArcelorMittal Kryvyi Rih and three mining and ore-processing plants, were left idle.
September's steel output plunged 4.7 times compared to the previous year, reaching 131,000 tons, according to the steelmakers' association Ukrmetalurhprom.
Metinvest's chief operating officer, Oleksandr Myronenko, informed Forbes Ukraine on 15 September that the group would declare force majeure on certain contracts following the temporary shutdown of Zaporizhstal and Kametstal. An estimated $1 billion impairment was anticipated by the ArcelorMittal Group, primarily linked to property, plant, and equipment. The company also provided over $700 million in financial assistance to its Ukrainian operations.
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