ArcelorMittal Faces $1B Impairment After Russian Attacks Halt Ukraine Steel Plant
Impact of Russian Missile Strikes on ArcelorMittal Kryvyi Rih
(Refiles to change Reuters instrument code to company's main listing in Amsterdam.)
Impairment Charge and Operational Challenges
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 restart operations at its ArcelorMittal Kryvyi Rih subsidiary in a safe and sustainable manner following repeated missile strikes.
Details of the Attacks
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 Strategic Response
- 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
- 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, the unit's CEO Mauro Longobardo said
Reporting and Editorial Credits
(Reporting by Zakarya Meliani in Gdansk; editing by Milla Nissi-Prussak)
