In early September, Russian ballistic missiles put three of Ukraine’s largest steel mills out of operation; these plants accounted for about 90% of the country’s steel production. The plants are located in the Zaporizhzhia and Dnipropetrovsk regions. This was reported by Dengi.ua, citing the Financial Times.
Which Plants Have Halted Operations?
These are Ukraine’s last three major steel mills. Two of them belong to the Metinvest Group, and the third is an ArcelorMittal facility in Kryvyi Rih.
According to the FT, following a series of missile strikes, all three facilities are currently shut down. The strikes specifically targeted key production facilities, including blast furnaces. As a result, approximately 90% of the country’s steel production has been halted.
The situation is complicated by the fact that it is currently impossible to determine how long it will take to restore operations at these facilities. It could take days, weeks, months, or even years.
“Today, there is no longer a metallurgical industry in Ukraine… They knew exactly where to strike,” Olexander Vodoviz, head of the CEO’s office at Metinvest, told the FT.
Thousands of Jobs Have Been Affected
A total of more than 15,000 people work at the three plants. Their shutdown could have consequences not only for the employees and the companies themselves, but also for the Ukrainian economy as a whole.
According to Vodoviz, the shutdown of steel mills could significantly impact tax revenues for the state budget.
Furthermore, the steel industry has traditionally been one of the key sectors of the Ukrainian economy and a source of export revenue. Therefore, a prolonged shutdown of the largest enterprises could affect not only steel production but also related transportation, raw material supplies, and other industrial supply chains.
However, the extent of the damage has not yet been definitively determined: the enterprises must assess the damage and determine which facilities can be restored and within what timeframe.