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ArcelorMittal Provides Update on Atlantique and Lorraine Operations

04/11/2013 - ArcelorMittal announced another important step forward in its information and consultation period, part of the implementation of ArcelorMittal Atlantique and Lorraine’s industrial and commercial project.

ArcelorMittal announced another important step forward in its information and consultation period, part of the implementation of ArcelorMittal Atlantique and Lorraine’s industrial and commercial project.
The Central Works Council meeting to discuss ArcelorMittal Atlantique and Lorraine’s industrial and commercial project took place on 11 April 2013, marking the end of the information and consultation period at that level. It will be followed by seven local Works Councils that will take place on 12 April 2013. At the end of the information and consultation period, the mothballing of Florange’s liquid phase and the implementation of the wider industrial and commercial project, as well as social negotiations, can begin.
629 employees impacted
The social aspect of ArcelorMittal Atlantique and Lorraine’s industrial and commercial project will be implemented on a voluntary basis, without any layoffs.
Today, 206 of the 629 employees impacted by the mothballing of Florange’s liquid phase have already left the company, the majority of them having retired. A total of 301 people have been moved to activities other than the liquid phase and 122 are still assigned to the liquid phase. Solutions for each of them will have to be found through negotiations with the employees’ representatives.
Mothballing of Florange’s liquid phase
The mothballing of Florange’s liquid phase is scheduled to begin over the next few weeks and should be completed by the end of June 2013. Mothballing includes the stoppage of the hot stoves, as well as stopping the equipment and facilities of the liquid phase and securing their protection.
The mothballing is compatible with the agreement reached with the French government.
Research project for reduced CO2 emissions
ArcelorMittal reaffirms its commitment to contribute up to €13 million towards the financing of a research program on CO2 reduction. A detailed industrial roadmap, established in coordination with the French government, will be submitted at the next “Commission de suivi” on 22 April2013.
Creation of integrated and sustainable packaging activities
To improve competitiveness, the reorganization of packaging activities will look to develop synergies between the Basse-Indre and Florange sites by developing production specializations at both plants. This strategy involves using Florange’s hot and cold rolling mills and its tinning line, to their full capacities, and doing the same with Basse-Indre’s two tinning lines. All employees affected by the temporary idling of Basse-Indre’s pickling and rolling mills will be redeployed in the downstream lines. Therefore, the plant’s workforce will remain stable.
A consistent and profitable strategy
ArcelorMittal Atlantique and Lorraine’s industrial and commercial project is to strengthen and develop the high value added activities of the industrial entity as well as to restore its profitability.
The concentration of slab production at Dunkerque has already reduced the cost of production and improved competitiveness, vital in this challenging environment.
As part of its commitment, ArcelorMittal has launched a €180 million investment program for the Florange plant. This investment has already begun, with €55 million invested to ensure the viability of the coke plant and sustain the development plan for high width Usibor®. Florange is now the only plant in the world capable of producing high width Usibor® Alusi®, giving the site a greater advantage within the automotive market.
A strong vision on a sustained basis
ArcelorMittal stands by the industrial and economic logic of its project for ArcelorMittal Atlantique and Lorraine, as it addresses the structural overcapacity of slab production in Europe. ArcelorMittal’s current production capacity in Europe, including the improved utilization of existing operations, is sufficient to meet medium-term steel demand. Even if demand increases by 3% a year from 2014 onwards, by 2018 it will still be around 15% below 2007 levels.
Henri-Pierre Orsoni, CEO ArcelorMittal Atlantique and Lorraine commented, “Tomorrow is the last step in the information consultation period and subsequently the objective is that we can then turn our full attention to restoring the profitability of ArcelorMittal Atlantique and Lorraine, finding solutions for the employees affected and ensuring that the industrial entity has a strong and sustainable future.”