ArcelorMittal (NYSE:MT) said on Friday it will halt operations at its Kryvyi Rih plant in Ukraine and record a non-cash impairment charge of approximately $1 billion following a series of missile strikes at the site.
The steelmaker said four missile strikes over a five-week period resulted in the deaths of five employees and injuries to 17 others.
ArcelorMittal said it had informed the Ukrainian government that it could no longer safely restart operations at ArcelorMittal Kryvyi Rih under current conditions.
The approximately $1 billion impairment primarily relates to damage to property, plant and equipment at the facility.
Four Missile Strikes Reported in Five Weeks
The latest strike on the plant occurred on September 21, according to ArcelorMittal. Previous attacks took place on August 17 and September 14, with the company reporting four strikes in total during the five-week period.
Of the 17 employees injured in the attacks, one remains in critical condition.
The company did not provide a timetable for a potential resumption of production.
ArcelorMittal Discussing Plant’s Future With Ukrainian Government
ArcelorMittal said it is holding discussions with the Ukrainian government regarding the future of the Kryvyi Rih operation.
The company plans to preserve the site’s infrastructure, maintaining the possibility of restarting production if conditions permit at a later date.
ArcelorMittal has provided more than $700 million to its Kryvyi Rih subsidiary since Russia’s invasion of Ukraine began in February 2022.
The decision to halt operations and preserve the facility leaves the timing of any potential restart dependent on future conditions at the site.