A third of the EU steel industry is at risk of shutting down – ArcelorMittal France

A third of the European steel industry could disappear if the EU does not take action against unfair competition from imports. This warning was made by Alain Le Grix de la Salle, Chairman of ArcelorMittal France, during a hearing at the Economic Affairs Committee of the French National Assembly, Kallanish reports.

Answering a question about the possibility of closing French plants, he emphasized that there is no certainty of their uninterrupted operation.

“All production sites in Europe, regardless of the country, are under threat,” added Alain Le Grix de la Salle.

The crisis in the European steel sector is caused by several factors, including large-scale imports of cheap steel from countries that ignore environmental standards, which is destroying the competitiveness of EU producers. In addition, energy costs in Europe are among the highest in the world. For example, gas prices in the EU are 4-5 times higher than in the US, and demand for steel is declining by 4% annually, which has already led to a 20% drop over the past 5 years.

“We are not against imports, but we are asking to limit their volumes to preserve our industry,” de la Salle emphasized.

ArcelorMittal has already halted decarbonization investments at its Dunkirk plant due to unfavorable conditions. Plans for investment in Ghent also remain in question until the revision of the carbon border adjustment mechanism (CBAM) is completed and new measures, such as the Steel and Metals Action Plan, are adopted in 2025.

“Europe needs to realize the seriousness of this crisis and take measures to protect the steel industry,” the company representative said.

ArcelorMittal is calling for stronger trade defenses, reform of the CBAM to ensure fair competition in the carbon market, and the prompt implementation of new strategies such as the Clean Industrial Deal.

These measures are key to preserving the industry that provides jobs and is the backbone of Europe’s economy.

As GMK Center reported earlier, at the end of November 2024, ArcelorMittal announced its intention to close its service centers in Reims and Denis (France) as part of the restructuring of its Centres de Services business. This decision may affect 130 jobs. The company cites a significant drop in customer activity in the industrial and automotive sectors.