ArcelorMittal / Ukraine: shutdown of a second plant, because of "high energy costs and CBAM impact"

ArcelorMittal Kryvyi Rih announces the forced shutdown of its subsidiary “Casting and Mechanical Plant” (LMZ).The shutdown of LMZ comes into effect three months from the announcement, made on 27/02/2026. It reflects current economic and market conditions in Ukraine during the full-scale war.

The key reason is the energy crisis, particularly the extremely high cost of electricity. Constant attacks on the energy infrastructure have caused shortages and the need to import electricity at higher prices (with prices three times higher since the beginning of the war), raising production costs and reducing the economic feasibility of steel manufacturing. Besides, frequent blackouts caused by infrastructure damage led to a significant production drop.

On top of that, "the European Commission’s Carbon Border Adjustment Mechanism (CBAM), effective January 1, 2026 without exceptions, caused the loss of the European market for many Ukrainian metallurgical producers, critically affecting volumes and workloads. ArcelorMittal Kryvyi Rih made significant efforts to reorient sales to the EU after the…