ArcelorMittal Kryvyi Rih, the Ukrainian subsidiary of Luxembourg-headquartered ArcelorMittal, has announced that it has completed the final production campaign at its blooming mill, marking a key step in the company’s ongoing restructuring of its steel production operations in Ukraine. The company stated that all planned operations at the blooming shop were successfully finalized, with the required volume of billets produced ahead of schedule.
The plant produced approximately 150,000 mt of billets, creating sufficient stock for further processing in downstream rolling operations. Following the shutdown of the blooming mill, the company will process these billets into finished products, primarily rebar, using its remaining rolling mills.
As part of the next stage, ArcelorMittal Kryvyi Rih will continue processing the accumulated billet stock during 2026. After this phase, certain rolling mills that rely exclusively on blooming mill output, specifically light section mills No. 2 and No. 3, are also expected to be shut down. The company plans to consolidate rolled steel production into a smaller number of mills aligned with its updated production structure.
Transformation driven by CBAM and energy costs
The restructuring is being carried out in response to several external pressures affecting the Ukrainian steel industry. According to the company, a key factor is the introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) without transitional measures for Ukrainian producers, which has led to the loss of access to the European market for part of its output
In addition, the company cited extremely high electricity costs in Ukraine, which have significantly increased production costs and reduced the economic viability of certain operations, including the blooming mill.
Broader impact on steel operations
The transformation of production is expected to include organizational and operational changes, with reports indicating that around 1,000 jobs could be affected as part of the restructuring process. ArcelorMittal Kryvyi Rih will continue operating its remaining facilities, focusing on optimizing production flows and adapting to current market and cost conditions.
The development highlights the ongoing challenges faced by steel producers in Ukraine, including regulatory changes, energy costs and the impact of the war on industrial operations.