In a statement, ArcelorMittal said the action follows its 2024 decision to end the mill's iron supply contract with neighboring thyssenkrupp. Continuing the contract was cost-prohibitive, ArcelorMittal said, and though it had explored several other options to continue supplying iron to the steel shop, including a process change, none proved to be economically viable. 

Instead, the mill will source semifinished steel from other ArcelorMittal sites and third-party producers. ArcelorMittal Gandrage, which currently receives semifinished steel from Duisburg, also will be supplied by other ArcelorMittal sites and external suppliers, the company said. 

"We recognize that this is difficult news for our employees in ArcelorMittal Duisburg," said Sanjay Samaddar, chief executive officer of ArcelorMittal Europe Long Products.  "While the structural challenges facing the bars and rods sector in Europe are significant and widely known, including low capacity utilization, decreasing local demand, restricted export opportunities and high energy costs,  the company’s absolute priority is securing the long-term future of ArcelorMittal Duisburg, for our customers, our employees and the wider community," he said. 

ArcelorMittal said it will begin discussing layoff plans with workers this month.