The Kryvyi Rih Foundry and Mechanical Plant (Kryvyi Rih) will cease production at the end of May 2026 for a number of economic reasons. This was reported by the PromPolitInform portal with reference to the press service of the ArcelorMittal Kryvyi Rih (AMKR) company.
“The decision to cease production at Kryvyi Rih Foundry and Mechanical Plant, a subsidiary of ArcelorMittal Kryvyi Rih, will take effect three months from the date of the announcement,” the statement reads.
The main reason for this move is the significant increase in electricity costs for industrial producers.
“Compared to 2024, when we asked the Ukrainian government to urgently develop measures to curb rising electricity prices and support producers in the mining and metallurgy industries, the price of electricity has risen from $120 per MWh (in the second quarter of 2023) to $230 in 2026, reaching $370 per MWh during peak hours,” the plant reported.
Constant attacks on the energy infrastructure have led to a significant decline in production at AMKR: in January 2026, compared to November 2025, pig iron production fell by 30%, steel by 40%, and rolled products by 60%. Under these conditions, LMZ, which is an auxiliary division of the main production facility, is not receiving sufficient domestic orders. An additional blow was the introduction of the CBAM (cross-border carbon tax) mechanism by the European Union, effective January 1, 2026, with no exceptions or transition period for Ukrainian manufacturers. The company notes that after the outbreak of the war, it had essentially built sales to the European market from scratch, but CBAM cut off this route, depriving the plant of orders.
The company says the loss of the European market has exacerbated the situation with securing sufficient domestic orders to ensure LMZ’s operations in the near future.
The Foundry and Mechanical Plant (LMZ) consists of seven shops, including a mold shop, a steel foundry, an iron foundry, a metalwork shop, mechanical repair shops No. 1 and No. 2, and repair and assembly shop No. 3. Its closure will affect more than 1,700 employees, and taking into account the previously announced closure of the blooming mill, the total number of job cuts at AMKR will exceed 2,400.
