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ArcelorMittal Announces Additional Investments at Gandrange

04/08/2008 - ArcelorMittal announces a range of new investments at its Gandrange site in the Lorraine region of France, and several other initiatives aimed at reinforcing its commitment to France.

ArcelorMittal announced a range of new investments at its Gandrange site in the Lorraine region of France, and several other initiatives aimed at reinforcing its commitment to France.

ArcelorMittal’s Additional Commitments to France
 
At Florange, the company said it intends to maintain blast furnace operations beyond 2012 “provided the right economic and regulatory conditions prevail (including the issue of relevant emissions quotas). The hot steelmaking facilities at Florange were previously due to be closed in 2010/11 (which would affect over 1000 employees); the closure of the hot phase was later postponed until 2012.
 
ArcelorMittal also said it will conduct a feasibility study at Florange to determine its suitability for a CO2 carbon capture and storage prototype project.  The company is looking to build a prototype blast furnace that will be able to capture and store CO2 gasses in an effective manner in support of its role as the lead member of the ULCOS (Ultra Low CO2 Steelmaking) project.
 
ArcelorMittal is also investigating the potential to co-operate with French energy group Poweo for the construction of new power plants in the Lorraine region.
 
Finally, ArcelorMittal and the French government also have agreed to study the possibility of cooperating on potential research and innovation projects for the benefit of the Lorraine region. A joint contribution of €20million is presently being discussed.

The announcements follow the company’s meeting last Friday (April 4) with the Workers Council, part of the company’s information and consultation process with the unions regarding the partial closure of its Gandrange facility. The company says focusing on the rolling mill operations will allow it to secure a sustainable and viable future for the facility, which has been consistently operating at a loss despite continued investments. For employees affected by the downsizing of the facility, ArcelorMittal is guaranteeing a job at the Group’s neighboring operations, for instance, in nearby Florange or Luxembourg.
 
ArcelorMittal also announced its intention to develop a number of downstream facilities on the site to complement its rolling mill activities and ensure the sustainability of its operations in the region. The investments—which will require a total investment of €30 million and will create 124 new full-time positions—include:
 
  • Creation of a service center in Gandrange for the construction industry.
  • Development of a distribution processing center for beams, which will include two new processing lines.
  • Development of a solar panels project, to develop solar technologies.
  • Construction of a new R&D facility for wire solutions.
  • Investment in the existing rolling mill.
 ArcelorMittal said it is also considering setting up a new technical education center for the Lorraine region. The company noted that the existing system is unlikely to deliver enough qualified people to fill the roles of those who will retire over the next ten years, which is estimated to include approximately one third of its industrial workforce in France.
 
The proposed technical education center would require a €5 million initial investment, to provide the facilities and technical equipment necessary for the education of up to 120 students. Training would last for two years and would include part-time employment with ArcelorMittal. Upon graduation, students would be employed by either ArcelorMittal or its subcontractors.
 
The company said it will also continue to look for other opportunities to expand its activities in Gandrange.
 
“France is the industrial hub of ArcelorMittal’s European operations and we are very committed to our presence here,” said ArcelorMittal President and CEO, Lakshmi N. Mittal, commenting on the various initiatives. “We want to strengthen our operations in terms of R&D and value-addition to ensure that we maintain a strong competitive advantage that supports the sustainability of our operations in France. These initiatives and investments have been designed to help us deliver on this aim.
 
“I would like to thank President Sarkozy for his support,” said Mittal. “The President is very dedicated to ensuring that France retains a strong industrial presence and has played an important role in helping us identify these projects. I also want to take this opportunity to reassure all the employees of Gandrange that we will have a solution for each and every one of them.”
 
ArcelorMittal has over 28,000 employees in France in over 50 industrial locations. The company produces more than 14 million tones of steel in the country through a wide range of industrial activities including flat carbon steel, stainless steel, steel plate and long carbon steel facilities. In France, ArcelorMittal also has a complete network for downstream activities including steel service centers, construction plants, and a national distribution network. The main Research & Development centre of ArcelorMittal worldwide is also located in France, in the Lorraine region. It is dedicated to steel industry processes and automotive applications and employs some 550 staff.
 
ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 28 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
 
ArcelorMittal’s key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.