ArcelorMittal announced it will permanently close its steel plant in Kryvyi Rih, Ukraine, following repeated Russian missile strikes that killed five workers and injured 17. The Luxembourg-based company cited safety concerns and economic unsustainability, noting the facility had been bombed four times in five weeks. The plant, Ukraine’s largest operational steel site, produced long steel rods and beams and included an iron ore mine.

Before the 2022 invasion, it produced 4.9 million tonnes of steel and generated $4.1 billion in sales in 2021, but output has since dropped by two-thirds. The company has spent $500 million in reserves and received a $700 million cash injection from its parent to sustain operations amid blackouts and port closures. ArcelorMittal expects a $1 billion non-cash impairment charge due to the closure.

The shutdown affects 16,000 workers, with the company assessing how many are needed to safely decommission the plant, including cooling the blast furnace, which operates above 1,500°C. The closure follows a broader campaign targeting Ukraine’s steel industry, including strikes on Zaporizhstal and Kamet Steel, owned by Metinvest Holding. Oleksandr Vodoviz of Metinvest stated that Ukraine no longer has a functioning steel industry.

ArcelorMittal had requested government protection at least six times during the war, citing constant air-raid sirens and the risk to workers’ lives. The company hopes to restart operations if peace returns.