Published by Global Banking & Finance Review®
Posted on February 27, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleArcelorMittal Kryvyi Rih will shut its Casting and Mechanical Plant within three months, citing wartime power disruption and soaring electricity costs after intensified Russian strikes on Ukraine’s energy infrastructure. The company also flagged the EU’s CBAM definitive regime starting Jan. 1, 2026
KYIV, Feb 27 (Reuters) - Ukraine's major steelmaker ArcelorMittal Kryvyi Rih is closing another of its divisions in Ukraine due to a deepening energy crisis caused by Russia's ongoing attacks on the Ukrainian energy system, the company said on Friday.
Russia has sharply increased the number and intensity of strikes on Ukraine's energy sector, targeting both power plants and substations, forcing Kyiv to cut power supplies to businesses and increase imports from the EU.
The company, a subsidiary of ArcelorMittal SA, said in a statement that it would close its subsidiary Casting and Mechanical Plant, one of the country's largest enterprises, which includes foundry, press-forging, thermal, weld deposition equipment and machining.
The decision to shut down the plant comes into effect three months from the date of announcement.
"The key reason for this step is the energy crisis that our company faces during wartime, in particular the extremely high cost of electricity in Ukraine," ArcelorMittal Kryvyi Rih said.
"This led to the significant increase of the cost of production, which further worsened the economic feasibility of manufacturing steel products," it added.
The company also said that another reason was the decision of the European Commission to introduce the CBAM (Carbon Border Adjustment Mechanism) from January without any exceptions or transition period for Ukrainian producers.
The CBAM is the EU's tool to put a fair price on carbon emitted during the production of carbon-intensive goods entering the bloc.
The plant will be the second of the company's assets to be closed this year.
ArcelorMittal Kryvyi Rih said in January it would close one of its production units in the second quarter because of the EU environmental policy and high local power prices.
The decision to shut down the two units will affect more than 2,400 jobs, it said.
(Reporting by Pavel Polityuk. Editing by Jane Merriman)
ArcelorMittal Kryvyi Rih said it will close its subsidiary Casting and Mechanical Plant, a major enterprise with foundry, press-forging, thermal, weld deposition, equipment and machining operations.
The company said the decision to shut down the plant comes into effect three months from the date of the announcement.
It cited an energy crisis during wartime, especially the extremely high cost of electricity in Ukraine, which raised production costs and worsened the feasibility of manufacturing steel products.
The company said the European Commission’s introduction of the CBAM from January, without exceptions or a transition period for Ukrainian producers, was another reason for the closure.
ArcelorMittal Kryvyi Rih said the decision to shut down the two units will affect more than 2,400 jobs.
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