France returns to debate on nationalization of ArcelorMittal assets

A bill proposed by La France Insoumise (LFI) to nationalize ArcelorMittal France’s assets has reignited debate on the issue in the country, Le Dauphiné reports.

On November 19, this bill, aimed at regaining 100% control over ArcelorMittal, was approved by the Finance Committee of the French National Assembly. The document was supported by the left, but the right and centrists rejected it, with the National Rally (RN) party’s abstention from voting being the turning point.

The bill is scheduled to be discussed at a plenary session on November 27.

Aurelie Truev, the LFI deputy who introduced the bill, believes that nationalization is the only way to prevent the closure of 40 ArcelorMittal facilities in France. She accused the company of offshoring, underinvestment, and failure to modernize production despite receiving state subsidies.

Trouve estimates the cost of nationalization at €3 billion and believes it is an important step towards the rapid decarbonization of blast furnaces, otherwise the industry risks coming under pressure from future European regulations.

Government groups consider this measure ineffective, as it will not solve the problem of competition from China and will shift the burden of the sector’s crisis onto taxpayers. RN, in turn, proposed a “golden share” — a state veto on strategic decisions without direct management.

In October this year, the Senate rejected a similar bill on the nationalization of ArcelorMittal, introduced by the communists.

The CEO of the group’s French subsidiary, Alain Le Grix de la Salle, said on LinkedIn that changing ArcelorMittal France’s shareholder would not solve the structural problems facing the company.

“Splitting up our French assets and separating them from the rest of the group can only make their situation worse,” he said.

To give steel production in Europe a future, the head of ArcelorMittal France points out that two problems plaguing the industry must be addressed: falling demand and global overcapacity, which leads to massive imports of subsidized steel at low prices and has a devastating impact on Europe.

Alain Le Grix de la Salle emphasized that the company’s French structures are holding up because they are part of the ArcelorMittal group. Over the past five years, the metallurgical giant has invested €1.7 billion in the country, and its new plant in Martigues for the production of electrical steel is the group’s largest investment in Europe in the last 10 years. In addition, the division’s markets and customers are currently mostly European, and France’s customer share is very small.

It should be recalled that Poland does not rule out the purchase of ArcelorMittal’s assets if the company exits the market. As noted in September, the government is closely monitoring the situation surrounding the steel giant’s assets. At the end of October, Polish Minister of State Assets Wojciech Balczun announced a meeting with ArcelorMittal representatives to discuss the future of the company’s operations in the country.