ArcelorMittal takes $1bn hit, keeps Ukraine plant shut after missile strikes

(Sharecast News) - ArcelorMittal said on Friday that it was unable to safely restart operations at its Kryvyi Rih steel plant in Ukraine after four missile strikes over the past five weeks, and expects to book a non-cash impairment charge of around $1bn.

The steelmaker said the attacks caused fatalities, injuries and extensive damage to production facilities, with the latest strike taking place on 21 September. Five employees were killed across the four attacks and 17 were injured, including one who remains in a critical condition.

ArcelorMittal has told the Ukrainian government that operations cannot currently be resumed in a safe and sustainable manner.

It said it would instead focus on preserving the site's infrastructure so that restarting production could remain an option once conditions improve.

"It is with deep regret that we have concluded that we are no longer able to safely operate ArcelorMittal Kryvyi Rih," said Mauro Longobardo, chief executive of ArcelorMittal Kryvyi Rih.

"We are discussing the future of the plant with the Government of Ukraine and will focus on preserving the infrastructure, so when peace finally returns, options for restarting production remain available."

Since Russia's invasion began in February 2022, ArcelorMittal has provided more than $700m of financial support to keep the Ukrainian business operating.

Despite the news on Friday, the Amsterdam-listed stock was 2.7% higher at �63.70 by 1031 BST.