Jan 17 2008
ArcelorMittal has initiated information and consultation of personnel representatives on a reorganisation project for its wire rod operations in Gandrange (Lorraine, Eastern France) and in other European locations. At a meeting with the Select Committee of the European Works Council in Luxembourg, the Group outlined its analysis of the business situation of its wire rod activity in northern Europe and an approach to turn around the Gandrange plant and optimize this business segment, part of the group's European long carbon steel activities. In the afternoon, information documents were handed to the local works council in Gandrange during a meeting at the site.
The project presented to the staff representatives aims at strengthening the specialisation of the currently loss-making Gandrange site in the wire rod rolling processes to enhance its future prospects. This project would be part of the Group's vision for the steel industry in Lorraine, aimed at making it a profitable and sustainable industry. In a separate meeting, ArcelorMittal confirmed its commitment to the neighbouring Florange, Lorraine operations (flat carbon steel) and announced further investments.
Gandrange
The project that was presented has two aspects
- Development of the Wire Rod & Bar Mill, which would process billets supplied from other steel plants, in particular from Germany (Duisburg-Ruhrort) and Luxembourg (Schifflange), enhancing the competitiveness of the overall wire rod business
Closure of the steel plant and billet mill
- ArcelorMittal Gandrange intends to fully honour its social responsibility during the implementation of this reorganisation project. The Group, through dialogue with employee representatives, would give priority to the relocation of employees to its other sites (in particular in Florange and in Luxembourg). Every employee would be offered a solution.
Florange
ArcelorMittal has decided to increase the capital investment budget for Florange for 2008 by more than 60% to a total of EUR 65 million. These investments will allow to extend the viability and effectiveness of steelmaking operations of this major integrated flat carbon steel production site.
The combination of both initiatives will be clearly strengthening ArcelorMittal's presence and future prospects in the Lorraine region, in line with the company's stated commitments.