ArcelorMittal has invested $1.2 billion since 2022 to ensure the survival of its Ukrainian division

The outlook for ArcelorMittal Kryvyi Rih's profitability in 2026 is also negative

Since 2022, the ArcelorMittal group has already invested $1.2 billion in its Ukrainian division to ensure its survival. This was stated in an interview with Interfax-Ukraine by Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih.

According to him, the forecast for 2026 in terms of profitability is also negative – the business is likely to incur losses of at least $150 million.

«It looks like we will incur these losses in the first quarter due to the loss of markets and extremely high electricity prices compared to any historical period. We could not have predicted them in the budget. Previously, we had forecast such losses for the whole year! This picture ($150 million in losses in the first quarter) is quite frightening. This is not what we expected. And we do not see how all this can improve,» Mauro Longobardo emphasized.

Recently, the European Bank for Reconstruction and Development provided AMCR with an additional loan of up to $200 million to replenish working capital and support operations.

The CEO of ArcelorMittal Kryvyi Rih recalled that the EBRD had previously provided support to the company, and the funds had been used. At the same time, AMKR restructured the repayment schedule—it was originally planned to begin at the end of 2025.

Attempts to obtain financing from other large institutions failed because no one wanted to take on the current risks, especially given the company’s financial forecasts. Electricity prices are destroying any possibility for the metallurgical plant to be economically viable.

Mauro Longobardo also commented on his previous statement that if losses continue, the ArcelorMittal group may reconsider its presence in Ukraine. He confirmed that if the situation does not improve, the company will make certain decisions, but it is difficult to predict what they will be.

«It is impossible to run a business at a loss indefinitely. This is not a normal situation. Our company is a public corporation. Constant losses are unacceptable to our shareholders. This is not a private company where the owner can decide to support unprofitable production for, say, 10 years. I can say that our shareholders will require us to provide options on how to improve the situation,» said the CEO of ArcelorMittal Kryvyi Rih.

However, the fact that Ukraine’s future — the end of the war, reconstruction, and accession to the EU—looks positive, greatly helps to maintain the group’s interest in the Kryvyi Rih asset. However, these fundamental steps must be implemented.

It should be noted that ArcelorMittal Kryvyi Rih PJSC is recording a further deterioration in the situation with energy and logistics costs, which continues to put pressure on the production economy.