ArcelorMittal Kryvyi Rih forced to stop work of Casting and Mechanical Plant

ArcelorMittal Kryvyi Rih Mining and Metallurgical Plant (Dnipropetrovsk Region) announced the forced cessation of production activities of its subsidiary - LLC "Casting and Mechanical Plant" (CMP).

This is stated in the company's message, Ukrainian News Agency reports.

It is indicated that such a decision is dictated by the current economic and market circumstances in which the company operates in Ukraine in conditions of a full-scale war.

CMP is an auxiliary unit of the main production of ArcelorMittal Kryvyi Rih.

The decision to stop the production activities of CMP comes into force three months from the date of the announcement.

ArcelorMittal Kryvyi Rih emphasizes that the decision to close the CMP will affect more than 1,700 jobs, and together with the closure of the blooming shop and related production processes, the number of job cuts will exceed 2,400.

According to the report, the key reason for such a move is the energy crisis that the company is facing during wartime, in particular the extremely high cost of electricity in Ukraine.

Since the beginning of the war, the cost of electricity for industrial producers has almost tripled from USD 120 per MWh (in Q2 2024 with delivery excluding VAT) to USD 230 in February 2026, reaching up to USD 370 per MWh during peak hours.

Continued attacks on energy infrastructure have caused electricity shortages and the need to import electricity at even higher prices.

This led to a significant increase in the cost of production, which further worsened the economic feasibility of metallurgical production.

Due to the electricity shortage in January 2026, compared to November 2025, there was a 30% decrease in pig iron production; a 40% decrease in steel production and a 60% decrease in rolled steel production.

It is also noted that an additional negative factor was the decision of the European Commission to introduce CBAM (Carbon Cross-Border Adjustment Mechanism) from January 1, 2026 without any exceptions and a transition period for Ukrainian producers.

This led to the loss of the European market for a significant part of Ukrainian metallurgical producers, which critically affected production volumes and the workload of individual divisions and capacities.

LLC Casting and Mechanical Plant is one of the largest machine-building enterprises in Ukraine.

The enterprise is a powerful machine-building and repair and mechanical complex, which includes a number of machine-building chains and such production sectors as foundry, forging and pressing, thermal, welding and surfacing production, mechanical processing, metalworking and assembly, production of rubber and technical products, repair of mechanical products, and others.

The CMP consists of 7 workshops, such as mold production, steel foundry, cast iron foundry, metal structures workshop, repair and mechanical workshops No. 1 and No. 2, and repair and assembly workshop No. 3.

As Ukrainian News Agency earlier reported, in late January, ArcelorMittal Kryvyi Rih reported on the forced shutdown of the blooming workshop in the second quarter of 2026.

In 2025, compared to 2024, the ArcelorMittal Kryvyi Rih plant increased steel production by 2.3% to 1.689 million tons.

The plant's capacity is designed for an annual output of more than 6 million tons of steel, more than 5 million tons of rolled steel and more than 5.5 million tons of pig iron.

95.1283% of the plant's shares belong to Mittal Steel Germany GmbH, which is part of the international holding Arcelor Mittal.

ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine, specializing in the production of long rolled steel, in particular reinforcement and wire rod.