Energy Crisis Forces Major Ukrainian Steel Plant Closure
ArcelorMittal Kryvyi Rih, a key Ukrainian steelmaker, is closing another division due to an energy crisis intensified by Russian attacks. This closure impacts over 2,400 jobs and highlights challenges from high electricity costs and EU's CBAM policy.
- Country:
- Ukraine
In a significant blow to Ukraine's steel industry, ArcelorMittal Kryvyi Rih announced the closure of another division due to an aggravating energy crisis, exacerbated by Russia's attacks on Ukraine's energy infrastructure.
According to a statement released by the company, the subsidiary Casting and Mechanical Plant, which is one of the nation's largest enterprises, will cease operations in three months. This plant houses critical foundry and machining facilities that play a key role in Ukraine's manufacturing sector.
The crisis in Ukraine's energy sector, coupled with high electricity prices and the EU's new Carbon Border Adjustment Mechanism (CBAM), has driven up production costs, making continued operations economically unviable. This shutdown will impact over 2,400 jobs and marks the second closure by ArcelorMittal Kryvyi Rih this year.
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