ArcelorMittal to book $1 billion charge as Russian strikes shutter Ukraine plant

ArcelorMittal Faces $1 Billion Charge as Missile Strikes Halt Ukraine Operations

Impact of Missile Strikes on ArcelorMittal Kryvyi Rih and Financial Implications

Background and Immediate Effects

Sept 25 (Reuters) - Steelmaker ArcelorMittal said on Friday it expected to book a non-cash impairment charge of around $1 billion, after telling the Ukrainian government it could not safely restart operations at its ArcelorMittal Kryvyi Rih subsidiary following repeated missile strikes.

Details of the Missile Strikes

Russian strikes on the Kryvyi Rih plant in August and September damaged production facilities, with four attacks over the past five weeks killing five and injuring 17, one of whom remains in a critical condition.

Financial and Operational Consequences

• The $1 billion charge mainly reflects damage to property, the plant and equipment

• ArcelorMittal has provided more than $700 million in financial support to the unit to ensure continuity of operations since the war started

Future Plans and Strategic Focus

• It will focus on preserving infrastructure while discussing the future of the plant with the government, so that options for restarting production remain available when peace returns

Market and Analyst Reactions

• J.P. Morgan analysts said the impairment was not expected to affect group EBITDA despite some possible sectoral losses in Q3 and Q4

• Supply disruptions at Ukrainian sites could tighten European hot-rolled coil steel supply and support prices, they added

Reporting and Editorial Credits

(Reporting by Zakarya Meliani in Gdansk; editing by Milla Nissi-Prussak)