Rising Imports Force ArcelorMittal to Idle Mill, Curtail Production
In an announcement Monday, the steelmaker said it will temporarily idle its Polish steel works in Krakow and will reduce production in Asturias, Spain. In addition, it is revising the ramp-up plan for the former ILVA steel works in Italy, saying that it will now emphasize cost and quality optimization over volume.
“These actions reflect the weak demand environment in Europe today, a situation further compounded by increased imports despite the safeguard measures introduced by the European Commission. High energy costs and increasing carbon costs are adding to the tough environment,” said Geert van Poelvoorde, chief executive of ArcelorMittal’s European flat products operations.
“The difficult decision to temporarily reduce our European primary flat steel production has not been taken lightly. We understand the impact this has on employees and the local communities and will be working to ensure social measures are in place to support them during this period."
You can find the company’s full announcement here.