ArcelorMittal's CEO said Saturday that he regrets the forced and permanent shutdown of the steel giant's two French blast furnaces. This is due to high labor and energy costs, which put France at a competitive disadvantage. In France, labor costs are 20 percent higher than in Spain and labor laws are too strict.
The long union struggle to keep the stoves, which employed 629 people, turned Florange into a symbol of industrial recession. ArcelorMittal is investing € 180 million ($ 235,470,000) in the remaining hot strip and cold rolled products. Investments in Florange are aimed at the development of high-tech products in order to reduce the cost of locally produced cars, agricultural equipment, including spare parts for tractors and machines. The Florange was built at the kilns to be close to the mining industry in the region. However, at present, this is not economically feasible, since cheaper imported ores are used on the northern coast.
Even using locally sourced raw materials, Florange would suffer as demand plummeted from car manufacturers in the region. “In this rhythm and by 2020, we will not be back to the level we reached in 2007," said CEO of ArcelorMittal. "Our warehouses will remain overcrowded. At the same time, the European steel industry is not competitive enough to export its products. It is a shame that Europe did not act together against inexpensive steel imports from developing countries, ”he said. As a result, the steel industry throughout Europe is sick from cheap imports.
