Steel World Review reports, according to Reuters, that steelmaker ArcelorMittal expects to book a non-cash impairment charge of around $1 billion following its inability to safely restart operations at its Ukrainian subsidiary, ArcelorMittal Kryvyi Rih.
The company said that following repeated missile attacks on the plant, it is not possible to safely resume operations at the facility.
The attacks on the Kryvyi Rih plant in August and September damaged production facilities. The plant was hit four times over a five-week period, killing five people and injuring 17. One of the injured remains in critical condition.
ArcelorMittal said the majority of the approximately $1 billion impairment charge relates to damage to property, the plant and equipment.
The company has provided more than $700 million in financial support to the unit since the start of the war.
ArcelorMittal said it will focus on preserving the plant’s infrastructure and will discuss the future of the facility with the Ukrainian government, keeping options open for restarting production if peace is restored.
J.P. Morgan analysts said they do not expect the impairment charge to affect the group’s EBITDA, although losses at the steel segment level could occur in the third and fourth quarters.
According to the analysts, disruptions to supply from Ukrainian sites could tighten hot-rolled coil supply in Europe and support prices.
