News Companies ArcelorMittal 1277 25 November 2024
The company cited regulatory uncertainty in the bloc
ArcelorMittal, the world’s second-largest steelmaker, has announced that it is postponing its planned green investments in the EU, Reuters reports.
The company cites uncertainty over the European Union’s regulatory directives as the reason for this.
In January of this year, ArcelorMittal received €850 million in subsidies from the French government to support its €1.7 billion decarbonization investment program through 2030 at its facilities in Dunkirk and Fos-sur-Mer. However, the company has not yet made final investment decisions on these projects, including the replacement of two of the three blast furnaces in Dunkirk with green hydrogen plants.
“We operate in a challenging market and there are a number of political uncertainties affecting the industry,” the company said in a statement.
As noted in ArcelorMittal, an effective mechanism for adjusting carbon credits is needed, as well as tougher trade protection measures to strengthen the business case.
ArcelorMittal is also awaiting the European Commission’s decision on the Steel Industry Action Plan.
“This is an investment worth several billion euros that will shape the future of our group for decades to come. Therefore, it is important that we are confident that we are making the right decisions for our future,” ArcelorMittal explained.
As noted, the company remains committed to decarbonization in Europe and continues to improve engineering research.
In a statement sent to AFP by French Industry Minister Marc Ferracci, Belga News Agency reports that the European steel industry is currently experiencing a crisis, with demand and steel prices reaching historic lows,
“This context explains ArcelorMittal’s decision to postpone its investment in decarbonization of the Dunkirk facility, which is currently not operating at full capacity,” the minister said.
According to the agency, ArcelorMittal wants to make similar investments at its site in Ghent, but this is also questionable. Several trade union sources said last week that the final decision on the “largest climate investment in Belgian history” has not been made and that the construction of new plants will be carried out in stages.
As a reminder, ArcelorMittal may close two service centers in France – in Reims and Denis. The move is explained by a significant drop in customer activity in the industrial and automotive sectors. The decision may affect 130 jobs and has provoked a negative reaction from trade unions.
