ArcelorMittal idles one blast furnace at Fos-sur-Mer

ArcelorMittal is preparing to shut down one blast furnace at its coil manufacturing facility in Fos-sur-Mer in southern France, the company confirms.

The production limitation is a result of the continued decline in coil consumption in the European market and the impact of high energy costs. The steelmaker has seen a significant drop in demand in Europe, while increasing imports of coils from third countries at prices lower than domestic prices are shrinking market share. It is reported that, starting in December, Fose will take partial measures "to adapt the working hours of some staff to a maximum of one day a week." The company will activate the government's layoff scheme.

Production activity at the site will resume when market conditions improve, says ArcelorMittal Méditerranée CEO Bruno Ribot. He adds that the plant's order forecasts for late 2022 and early 2023 are down.

In September, ArcelorMittal announced that it was adapting its workforce in France to the current contraction in demand in order to minimize the impact of the economic crisis. The company is reducing the use of temporary workers and contractors wherever possible by encouraging employees to take early leave and implementing part-time activities due to persistently low demand for steel in its French and European markets, in particular in the automotive and industrial sectors.

The Fose site has two blast furnaces employing 2,500 people.