Full Breakdown
ArcelorMittal Halts Production at Ukraine’s Largest Steel Plant Amid Escalating Russian Air Attacks
By Drooid · · How we work
Core Event: Shutdown of the Kryvyi Rih Steel Plant
On September 25, ArcelorMittal announced that it could no longer restart production at the Kryvyi Rih steel plant, Ukraine’s largest steel facility. The decision follows four missile or drone strikes in five weeks that caused extensive damage and killed five workers at a southeastern plant. ArcelorMittal’s subsidiary chief executive Mauro Longobardo said the plant could not operate safely and sustainably.
Background & Context
Russia’s air campaign has intensified in recent months, employing ballistic missiles and jet-powered drones that Ukraine’s air defenses cannot reliably intercept. Targets have included industrial complexes, logistics hubs, Black Sea ports and civilian infrastructure. The Ukrainian steel sector, which accounts for roughly 15 % of the country’s exports, has been under pressure both from these attacks and from trade restrictions imposed by the European Union, Ukraine’s top trading partner.
Data & Statistics
- 2025 production: 1.7 million metric tons of steel at Kryvyi Rih.
- Impairment charge: ArcelorMittal expects a non-cash charge of about $1 billion, roughly 2 % of its market capitalisation.
- Share reaction: The company’s shares rose 2.2 % at 1021 GMT, outpacing the 0.6 % gain in the pan-European STOXX 600 index.
- Industry impact: A Kepler Cheuvreux analyst noted that the plant had been operating at significantly reduced capacity since 2022, limiting the shutdown’s effect on global steel markets.
Official Statements & Responses
- Ukrainian President: Volodymyr Zelensky described a drone strike that killed a 14-year-old boy in central Kyiv as “absolutely savage and sickening.” He also noted separate attacks that killed a person at a postal facility in Odesa and injured civilians at a medical clinic in Zaporizhzhia.
- United Nations: The UN monitoring mission reported at least 200 civilian deaths in September from Russian attacks that damaged homes, hospitals, shops and workplaces.
- Russian Defence Ministry: Moscow claimed its forces carried out overnight drone strikes on Ukrainian defence-industry facilities, logistics centres and vessels used by Kyiv’s armed forces.
Verbatim Quotes
- “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,” — Longobardo. ArcelorMittal
What’s Next
ArcelorMittal indicated ongoing discussions with the Ukrainian government to preserve the Kryvyi Rih plant’s infrastructure, keeping open the possibility of resuming production once hostilities cease. No specific timeline for a restart was provided.
