In a statement, the company said that the EU’s carbon tax, which came into force on 1 January, has effectively made access to the European market more difficult for a significant share of metallurgical products originating from Ukraine. It added that this has negatively affected export revenues, increasing pressure on production costs.
The unit set to be closed was identified as the blooming mill operating at a facility located in the south-east of the country, around 70 kilometres from the front line. The plant produced billets used in small-section and wire production.
ArcelorMittal Kryvyi Rih’s management stressed that high electricity prices in Ukraine have seriously undermined the economic viability of the facility. It noted that intensified Russian attacks on energy infrastructure have led to widespread power outages across the country, alongside ongoing restrictions on electricity supplies to industry.
The company also said that the government’s move to push businesses towards importing electricity from the EU at higher prices has further increased production costs and reduced the competitiveness of exports.
Earlier this month, Ferrexpo, one of Europe’s leading suppliers of high-grade iron ore pellets used in steelmaking, also announced that it had suspended mining operations in Ukraine and temporarily laid off part of its workforce, citing disruptions to electricity supply.
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