ArcelorMittal to Close More Ukraine Units and Cut Jobs
The steelmaker will close two rolling mills due to energy shortages and EU environmental costs. These measures could lead to approximately 3,400 job cuts.
The major steel manufacturer ArcelorMittal Kryvyi Rih, a subsidiary of AB SA, has announced the closure of two additional rolling mills in Ukraine. The company cited the ongoing energy crisis and the high costs associated with environmental regulations as the primary drivers for this decision. This move follows previous closures announced last month, which included the halting of operations at the Casting and Mechanical Plant and the Blooming shop.
Russia has consistently targeted power plants and substations, which has severely impacted industrial operations and forced the country to increase electricity imports from the European Union. In addition to the energy challenges, the steelmaker pointed to the implementation of the Carbon Border Adjustment Mechanism (CBAM). This tool, designed to price carbon emissions for goods entering the bloc, was applied without any exceptions or transition periods for Ukrainian producers.
