ArcelorMittal cannot restart Ukrainian plant and expects $1 billion impairment

ArcelorMittal ($MT) said it cannot restart its Kryvyi Rih operation in Ukraine safely and sustainably after four missile strikes in five weeks. The company reported five deaths, 17 injuries and extensive damage to production facilities. It has notified the Ukrainian government and is discussing the plant’s future rather than announcing a near-term return to production.

The group expects an approximately $1 billion noncash impairment, principally relating to property, plant and equipment at the subsidiary. Management plans to preserve infrastructure so that restarting production remains an option when conditions permit. ArcelorMittal said it has provided more than $700 million of financial support since the war began; that cumulative support is separate from the newly expected accounting charge.

Sources:

• ArcelorMittal — operating assessment and expected impairment, GlobeNewswire release