ArcelorMittal to close 2 French blast furnaces

Global steel major ArcelorMittal today announced plans to permanently close two blast furnaces at Florange in France that will affect 629 people. The decision was made by the company's central works council, which met to discuss a proposal for the future of the Florange plant, the company said in a statement.

''Given the continued economic difficulties affecting the French and European economies, the company wishes to propose to permanently close the liquid phase and concentrate efforts and investment on the high-quality finishing operation, which employs more than 2,000 employees,'' Arcellor Mittal said.

And, despite significant overcapacity in the European steel industry, the company said, it has accepted the French government's request to find a buyer for the liquid phase within the next 60 days.  

The two furnaces have been idling for the last 14 months. The temporary closure of the two units, announced earlier by the company, had become a political issue in France and the French government has been making attempts to avoid its permanent closure.

''This proposal has not been made lightly but it is a reality that the Florange liquid phase and the slab it produces are not competitive in today's difficult economic context.

''ArcelorMittal fully recognises that this is a difficult announcement for those who work at the liquid phase. However, it is important to emphasise that this does not represent the end of the steel industry in Lorraine,'' company's CEO for Flat Carbon Europe, Robrecht Himpe was quoted in the statement.