KYIV, March 16 (Reuters) - Ukraine's major steelmaker ArcelorMittal Kryvyi Rih will close two rolling mills, it said on Monday, citing the energy crisis caused by Russian strikes and the cost of
ArcelorMittal to Shut More Ukrainian Mills Due to Energy Crisis, EU Rules
ArcelorMittal Kryvyi Rih Announces Further Closures Amid Energy and Regulatory Challenges
Impact of Russian Strikes on Ukraine's Energy Infrastructure
KYIV, March 16 (Reuters) - Ukraine's major steelmaker ArcelorMittal Kryvyi Rih will close two rolling mills, it said on Monday, citing the energy crisis caused by Russian strikes and the cost of European Union environmental requirements.
It did not give a timeframe for the closures that are in addition to closures announced last month by the ArcelorMittal SA subsidiary. It said then it would halt its Casting and Mechanical Plant, one of the country's largest enterprises, and its Blooming shop, also in Ukraine.
Power Supply Disruptions and Increased Imports
Russian strikes have targeted both power plants and substations, forcing Kyiv to cut power supplies to businesses and increase imports from the EU.
European Union Environmental Regulations and Their Effects
Introduction of the Carbon Border Adjustment Mechanism (CBAM)
ArcelorMittal also cited the EU decision to introduce the Carbon Border Adjustment Mechanism from January without any exceptions or any transition period for Ukrainian producers.
Purpose and Implications of CBAM
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.
Company Response and Future Plans
Crisis Measures and Operational Adjustments
"As a reaction to adverse economic conditions in wartime Ukraine, including soaring electricity costs and CBAM, ArcelorMittal Kryvyi Rih was forced to take a number of crisis measures aimed at achieving financial viability and increasing operational efficiency of the company," it said in a statement.
Consolidation and Job Cuts
It said the company will consolidate rolling operations across a smaller number of mills and that the cumulative number of job cuts may reach 3,400.
Reporting Credits
(Reporting by Pavel Polityuk; editing by Barbara Lewis)
