KYIV, Ukraine – ArcelorMittal Kryvyi Rih, a major steel producer in Ukraine, announced Monday it will close two rolling mills, citing the ongoing energy crisis exacerbated by Russian strikes and the financial impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM). The closures add to previously announced shutdowns at the company’s Ukrainian facilities.
The impacted mills are part of ArcelorMittal Kryvyi Rih’s rolling operations. The company did not specify a precise timeline for the closures, but indicated they are a direct response to “adverse economic conditions in wartime Ukraine,” including escalating electricity costs and the recent EU carbon tariff. Last month, the company announced the halting of operations at its Casting and Mechanical Plant and Blooming shop, both significant enterprises within the country.
Russia’s sustained targeting of Ukraine’s energy infrastructure has led to widespread power disruptions, forcing the Ukrainian government to implement rolling blackouts for businesses and increase energy imports from the European Union. According to Global Banking & Finance Review, these strikes have specifically targeted both power plants and substations.
The EU’s Carbon Border Adjustment Mechanism, which came into effect in January, imposes a carbon price on certain imported goods, including steel, to level the playing field between domestic producers subject to carbon pricing and those from countries with less stringent regulations. ArcelorMittal Kryvyi Rih stated the CBAM was implemented “without any exceptions or any transition period for Ukrainian producers.” The mechanism aims to ensure a “fair price on carbon emitted during the production of carbon-intensive goods” entering the EU, as described by the EU Commission.
ArcelorMittal Kryvyi Rih stated This proves consolidating its remaining rolling operations to improve financial viability and operational efficiency. The company anticipates cumulative job cuts may reach 3,400 as a result of these measures. “As a reaction to adverse economic conditions… ArcelorMittal Kryvyi Rih was forced to take a number of crisis measures,” the company said in a statement.
The closures come as Ukraine continues to grapple with the economic consequences of the ongoing conflict with Russia. The situation highlights the complex interplay between wartime disruptions, energy security, and international trade regulations impacting Ukrainian industry.
