ArcelorMittal to Build Beam Mill in Contrecoeur, Restructure Canadian Operations
12/12/2007 - ArcelorMittal’s Canadian restructuring plans include consolidation of flat products production at the Dofasco facility in Hamilton, and long products production at the company’s ArcelorMittal Montreal facility in Contrecoeur, Que.
ArcelorMittal has announced plans to build a $380-million beam mill in Contrecoeur as part of the company’s restructuring of its Canadian steel production operations.
|
Although ArcelorMittal’s restructuring of its Canadian operations will result in the closure of both hot and cold mill operations at the Contrecoeur facility, the company has also confirmed plans to build a new 800,000-tonne/year state-of-the-art beam mill at that same facility.
Once constructed, the new beam mill will employ 200 full-time employees and could begin production as early as 2010.
|
As part of the restructuring plan, the company will consolidate its Canadian flat carbon production at the Dofasco facility in Hamilton, Ont., while long carbon production will be consolidated at the ArcelorMittal Montreal facility in Contrecoeur, Que. The Contrecoeur site—formerly known as Sidbec Dosco, which Ispat International had acquired in 1994—will close down its hot mill operations on January 31 and its cold mill operations on February 29.
"ArcelorMittal wants to develop a sustainable Canadian steel business. With the former Dofasco facility now part of ArcelorMittal in Hamilton, it does not make business sense to have Contrecoeur compete with a sister company in the flat carbon segment while Dofasco has unused capacity", stated Jos Jacqué, CEO, Long Carbon, North America. Factors that influenced the company’s rationalization decisions included the exchange rate, the cost of metallics, and significant increases in iron ore and natural gas prices. In addition, said the company, the Contrecoeur equipment and facilities are less competitive in today's market.
ArcelorMittal will work with the United Steelworkers (USW) union and government officials to facilitate the transition for employees affected by the restructuring, utilizing regulatory and labor-contract mechanisms where possible. There are also recall rights for unionized employees who will be laid off. The company said that staff employees affected by the closures will be offered severance packages and counseling services to help ease the job transition.
More than 450 employees at the Contrecoeur site will be eligible for retirement in 2008, and over 250 of them have already confirmed that they will retire. According to the company, this should help to mitigate most of the impact of the job losses.
ArcelorMittal confirmed its intention to invest in an 800,000-tonne/year state-of-the-art beam mill in Contrecoeur, subject to appropriate agreements. The company said that the support of the Québec government has been a determining factor in its decision. Once constructed, the new beam mill will employ 200 full-time employees and could begin production as early as 2010.
"Our biggest challenge now in Contrecoeur is for management, the labor union and employees to work together to reduce costs and improve our productivity through operational excellence, simplification, continuous improvement and work flexibility. With everyone's cooperation and this new investment, we have the potential to transform the Contrecoeur facilities and make them some of the best performing mills in North America," said Jos Jacqué.
"The best way to create a sustainable model for a steel company is through scale and diversification. With the merger of Arcelor and Mittal Steel, we now have conditions in Canada to move forward and consolidate steel production activities to create sustainable value for our customers, our employees, our shareholders and host communities," concluded Jos Jacqué.
