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ArcelorMittal Lays Groundwork for Reorganization of Gandrange Facility
01/17/2008 - ArcelorMittal will shut down the unprofitable Gandrange facility’s meltshop and billet mill in order to focus on developing the facility’s wire rod mill, which will now process billets produced at other company facilities in Germany and Luxembourg.
As part of the reorganization of its wire rod operations in Gandrange (Lorraine, Eastern France) and other European locations, ArcelorMittal has initiated a consultation of personnel representatives.
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Although ArcelorMittal’s reorganization plans call for closure of the Gandrange meltshop and billet mill, the company also announced plans to increase its 2008 investments by some 60% at the neighboring Florange facility, a flat rolled steel operation.
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The company outlined its business analysis of its wire rod activity in northern Europe during a recent meeting with the Select Committee of the European Works Council in Luxembourg. The presentation also included the company’s intended approach for turning around the Gandrange plant and optimizing this business segment. Later, during a meeting at the Gandrange facility, the company also handed out informational documents to the local works council. The company emphasized that its plans were aimed at strengthening the Gandrange site—which is currently operating at a loss—and to enhance its future prospects.
Reorganization efforts at Gandrange will focus on development of the wire rod and bar mill, which would process billets supplied from other steel plants, in particular from the Duisburg-Ruhrort facility in Germany and the Schifflange facility in Luxembourg. Meanwhile, Gandrange’s own steel plant and billet mill would be closed down. According to the company, outsourcing the billet supply will enhance the strength of the Gandrange facility as well as the overall competitiveness of the company’s total wire rod business
ArcelorMittal Gandrange said that it intends to fully honor its social responsibility as it implements this reorganization. The Group, through dialogue with employee representatives, would give priority to the relocation of employees to its other sites, particularly in Florange and Luxembourg. Every employee would be offered a solution.
ArcelorMittal Gandrange said that it intends to fully honor its social responsibility as it implements this reorganization. The Group, through dialogue with employee representatives, would give priority to the relocation of employees to its other sites, particularly in Florange and Luxembourg. Every employee would be offered a solution.
ArcelorMittal has decided to increase its 2008 capital investment budget for Florange by more than 60% to a total of EUR 65 million. The company said the additional investments will allow it to extend the viability and effectiveness of the steelmaking operations of this major integrated flat carbon steel production site.
The combination of both initiatives will ultimately help to strengthen ArcelorMittal's presence and future prospects in the Lorraine region, in line with the company's stated commitments.
ArcelorMittal is the world's largest steel company, with 320,000 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 27 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 pro forma financials for 2006 show combined revenues of USD 88.6 billion, with a crude steel production of 118 million tonnes, representing around 10% of world steel output.
