ArcelorMittal Kryvyi Rih announced that it will close its Casting and Mechanical Plant (CMP) in Ukraine, a decision that will take effect on May 27, 2026 and will eliminate more than 1,700 jobs.
The closure follows the January 26, 2026 announcement that the company’s blooming mill would be shut down in the second quarter of the year, marking the second major steel‑making facility to be closed in a short span.
The company cites an escalating energy crisis driven by Russian attacks on Ukraine’s power grid, which has pushed industrial electricity prices to roughly $230 per megawatt‑hour and, in some cases, above $370. Coupled with the EU’s Carbon Border Adjustment Mechanism, which imposes additional costs on Ukrainian steel exports, the CMP’s operating costs have become unsustainable.
Financially, ArcelorMittal Kryvyi Rih has reported losses for four consecutive years, with electricity costs rising from 7% of production costs in 2021 to 20% in 2025. The company’s management has stated that it has optimized operations as much as possible but requires government support on energy pricing to avoid further losses.
The decision will reduce the company’s production capacity in Ukraine and underscores the broader impact of the energy crisis on the Ukrainian steel industry, which is already facing high logistics costs, competition from Asian producers, and the loss of access to the EU market due to CBAM. The job cuts and capacity reduction signal a significant contraction in the company’s Ukrainian operations and a shift toward a more focused, cost‑controlled business model.
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