ArcelorMittal Drops Plan to Restart Ukrainian Operations After Missile Strikes — Update

By Michael Hennessey

ArcelorMittal said it cannot safely restart operations at its Ukrainian subsidiary after missile attacks killed five people and injured 17 employees, and expects to record a $1 billion impairment.

The Luxembourg-based steelmaker said Friday that four missile strikes at ArcelorMittal Kryvyi Rih over the past five weeks also caused extensive damage to production facilities. The most recent attack was on Monday.

The expected noncash impairment charge mainly relates to damaged property, plant and equipment at the site in Kryvyi Rih, central Ukraine.

"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," said Mauro Longobardo, chief executive officer of ArcelorMittal Kryvyi Rih.

The company previously said it had halted primary steel production at the plant and either idled or reduced activity to the minimum operating levels at the rest of its site after a mid-August missile strike damaged the main energy and blast furnace production facilities. Another attack on the plant in September targeted an ironmaking complex, it said.

The steelmaker said earlier this month that specialist teams were assessing the extent of the damage and the work required to resume operations, but noted it couldn't yet provide an estimate of how long repairs could take.

ArcelorMittal has been operating its Ukrainian plant at reduced capacity since 2022. It restarted steel production shortly after Russia began its full-scale invasion, and navigated energy shortages and logistics snarls to keep its operations running.

In recent earnings calls, executives at the company said its Ukrainian business--which supplies the domestic market--had been burning through cash since the war started, but that it had been able to break even in terms of earnings before interest, taxes, depreciation and amortization.

The company said Friday that it had provided more than $700 million over the course of the war to its Ukrainian subsidiary to ensure continuity of operations. ArcelorMittal's priority since the start of the war has been the safety and economic security of its Ukrainian employees, it added.

Recent Russian missile strikes have dealt further damage to Ukraine's steel industry. Ukrainian steelmaker Metinvest said its facilities had been hit by several attacks in recent weeks, and that they suffered strikes after they had been shut down.

Ferrexpo, a London-listed iron-ore producer with mining and processing operations in Ukraine, on Friday said it had been able to restart limited production, after suspending operations temporarily earlier this year due to attacks on Ukraine's electricity generation and transmission infrastructure.

Investors in Ferrexpo have backed a plan to raise around $100 million to fund its daily operations to avoid running out cash at the end of October. The company's revenue fell 57% to $196 million in the first half of 2026, it said.

Write to Michael Hennessey at michael.hennessey@wsj.com

(END) Dow Jones Newswires

September 25, 2026 06:23 ET (10:23 GMT)